BMW North America is looking to cut prices of its diesel-powered vehicles

Article by Christian Andrei, on August 26, 2010

If diesels are priced right, there's going to be a market for it, according to BMW North America CEO Jim O'Donnell who is seeking to get the board of directors in Germany to reduce MSRPs on diesel-powered models. O'Donnell wants to cut its price premium while installing more features to its diesel-run vehicles in order to increase sales.

Currently, BMW North America offers the X5 35d and 335d, which are selling well but O'Donnell believes could be better.

He thinks that too much of a premium has been added.He stated that his ideal premium would be just under $2000 for the X5 35d. Current premium for the sports activity vehicle is around $4000.

If the directors do decide to approve the proposal, they're going to have to be willing to absorb the cost.

Diesel technology is expensive compared to regular combustion engines and will have to be covered by the manufacturer if premiums are to be reduced. O'Donnell believes that most cost can be offset with higher volumes and higher sales.

In addition, O'Donnell is asking to allow the importation of cars with more features such as all-wheel drive. He hopes that by 2011, we will have a 3 Series featuring the technology.

The CEO is working on the belief that American buyers are becoming more aware of the advantages of diesel and other technologies.

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