BMW will continue cutting U.S. incentive spending and launch new key products

Article by Christian A., on August 26, 2010

It's unlikely that carmakers will be able to maintain the current level of incentive spending and this year, BMW will cut costs like these as it gets ready to launch several key products. At a press event last Tuesday, Rich Brekus, BMW's general manager of sales for North America, said that the company expects the market to improve. 

BMW is reportedly considering cutting incentives due to a "healthier" market and lower pricing. Autodata Corp. disclosed that BMW reduced incentives by 31% last month, to $3,545 a vehicle from the $5,140 a year ago. Autodata also reported that in the car industry, US incentive spending in April dropped by about 8%. 

Meanwhile, Brekus said BMW's April's incentive spending was less than what rival Mercedes-Benz had spent.

He also divulged that BMW intends to lower incentives in time for the launching of the redesigned 5 series in June. The 5 series is BMW's most profitable car, which is priced up to $1,600 below the 2009 model.

Brekus added that BMW has to keep its profits, which will then be used for research and development. In an interview with Automotive News earlier this month, Jim O'Donnell, BMW North America's boss described the series as its "most important car, profit-wise."

He said that BMW is eagerly anticipating its arrival, especially since its rival, the Mercedes E class is eating into its share.

If you liked the article, share on:

Comments

Recommended

Mazda seems too far ahead in Safety technology for having four of its vehicles chosen as the safest on the road. Very recently, the Insurance Institute for Highway Safety has...
by - June 22, 2017
The automotive world is intensely competitive given the growing number of players, but the British car manufacturer is adamantly holding on to its spot. The 2018 Jaguar XF Sportbrake, priced...
by - June 22, 2017
Audi’s all-electric supercar, the R8 e-tron, had been discontinued last October after being in the market for under two years. The electric vehicle was then exclusive to the European market...
by - June 22, 2017
Dodge has made it clear to everyone, including its potential buyers, that the Challenger SRT Demon is a street-legal drag car - that it is unlike any of your ordinary...
by - June 22, 2017
After a number of failed attempts, Tesla finally gets an Arizona dealership license by winning a court battle that allows them to sell directly to consumers. The automotive dealer license...
by - June 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries