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

The 2018 Cadillac CTS-V sedan will be getting a new paint job that will give it a unique icy feel. Dubbed the Glacier Metallic Edition, this special model was built...
by - August 23, 2017
During the North American International Auto Show at Detroit in 2015, Hyundai introduced a concept pickup truck they named the Santa Cruz. This model took home the Concept Truck of...
by - August 23, 2017
Porsche introduces the technologically advanced wheels with braided carbon fiber. These will be initially available on the 911 Turbo S Exclusive Series. Being the first car manufacturer to offer such...
by - August 23, 2017
All eyes were turned to the fuchsia pink bespoke McLaren 720S MSO at the 2017 Pebble Beach Concours d’Elegance Sunday. Surely, we can understand why. The one-off supercar, which was...
by - August 23, 2017
Hyundai Motor Group – including both Hyundai Motor and Kia Motors – has disclosed a wide-ranging plan to introduce 31 environment-friendly models in a new development roadmap that aims to...
by - August 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