# New Head of BMWUSA Unveils Master Plan to Destroy the Marque in the US



## damills (Nov 6, 2002)

May have already been posted but supposedly BMW is changing its strategy for a while, see article below

http://stage.bmwcca.org/forum/showthread.php?t=3418

Dont know if you have to be a member of BMWCCA to see this or not, so Im cut and paste the text below

*BMW NA turns down U.S. allocation* 


Running off to buy that new M3? Not so fast: It may not be available. In an interview with _Automotive News'_ Diana T. Kurylko, BMW NA CEO Jim O'Donnell-who was known for his cost-cutting measures as managing director of BMW Great Britain before taking the helm in the U.S.-spoke bluntly about reducing the numbers of BMW products sold in the U.S. and reducing the company's U.S. workforce. He also hinted at a possible return of four-cylinder BMWs to the U.S. Here's the_ Automotive News_ story:

*BMW to cut volume and jobs in U.S.*

By Diana T. Kurylko,_ Automotive News_

BMW's new North American chief wants to stop pushing for maximum sales volume in a declining market-even if it means bringing sixteen years of U.S. sales increases to a halt.

BMW Group's U.S. operations will not take 44,000 new BMW brand cars and trucks that were to be allocated to the United States this year, said Jim O'Donnell, CEO of BMW (U.S.) Holding Corp. Those vehicles will go to markets where they can be sold more profitably, he said. The smaller sales target is part of a bigger rethinking of U.S. strategy that O'Donnell will present to his German bosses in January. That plan could include the reintroduction of four-cylinder powertrains, O'Donnell said. Currently, the smallest powerplant in the BMW brand's U.S. lineup is a six-cylinder engine.

In an interview last week, O'Donnell said he will: 

Cut lease volume at least ten percentage points.

Reduce incentive spending and end the traditional December blowout.

Change dealer bonuses to boost customer satisfaction.

Cut corporate costs. O'Donnell says he will eliminate 90 North American jobs. 
"We want to see how the market is going and will revisit our aspirations in January," said O'Donnell, 58. The Scot, who took the helm at BMW in April, has long been familiar with the United States. "When you have had sixteen years of growth, you do not necessarily look too closely at what you are doing and how much you are spending," O'Donnell said. "I need that fresh look at the organization." _
Jim O'Donnell_​
O'Donnell has ordered his department heads to look at cutting costs. They were to have reported back to him by the end of last week. Marketing will be a key area for slashing expenses. O'Donnell said it is wrong "to push in a market that is declining."

O'Donnell expects BMW Group-which includes Rolls-Royce and Mini-to suffer a U.S. sales decline of ten percent this year. Overall U.S. sales of BMW, Mini and Rolls-Royce totaled 336,265 units last year. Within that total, the BMW brand accounted for 293,795 units. "We'll be down maybe a little bit less than the marketplace, about ten percent down-which I am fine with," O'Donnell said. "I'd rather sell fewer cars than blow them out the door without any profit."

Soft BMW brand sales account for the group's overall downturn. O'Donnell expects Mini sales to approach 50,000 units this year, up from 42,045 in 2007. The weak dollar and anticipated softness in the U.S. market led O'Donnell to cut his U.S. allocation of vehicles. BMW even slashed the U.S. allocation of the X3 small crossover by several thousand vehicles, even though it's in demand because of high fuel prices. "We cut back on the X3 primarily because it could be sold somewhere else and it wasn't a huge profit for us at the moment," O'Donnell said.

O'Donnell also is ending the mad push that BMW makes at the end of the year. Traditionally, that's when the automaker offers its highest incentives, most generous lease offers and dealer cash to compete with similar promotions by Lexus and Mercedes-Benz. He also has sharply reduced BMW's lease deals, which normally account for a big portion of sales. BMW's lease penetration fell from 63 percent in February to 50 percent in August, according to the Power Information Network.

Because of the decline in sales and a renewed emphasis on profits, O'Donnell has decided not to put any incentives on BMW's three newest cars: the compact one series, the X6 crossover and the M3 performance sedan. The X6 is so hot worldwide that BMW raised its base price, including shipping, to $56,325, up $3,000. What has been the blow-back? Absolutely none, says O'Donnell. Dealers tell him they can't keep the X6 in stock.


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## sponge_worthy (May 10, 2006)

damills said:


> May have already been posted but supposedly BMW is changing its strategy for a while, see article below
> 
> http://stage.bmwcca.org/forum/showthread.php?t=3418
> 
> ...


All makes perfect sense... BMW's leasing over the past few years has really been an aggressive push capture market share and increase sales - and thus increase profit through increased volume. The increased volume came at the risk of lots of left over inventory when leases end.

But seems like the focus needs to shift now to maximizing profit on sales without the risk and under the assumption people won't be buying as many cars given the economic climate for the foreseeable future.

We've seen this over the past year, lease rates have become crap and retail financing has become more appealing.

I find BMW's cognitive dissonance over the X3 amusing. On one hand the try to get rid of them with the most ridiculously high residuals not just compared to other BMWs but pretty much compared to ANY car on the market... And now they say they're cutting US allocation even though there's still demand.

I was at the dealer last night to complete the CPO buyout of my wife's X3 (got an exceptional deal in the end), place was a ghost town... Sales guys in the show room all looked distraught... was pretty depressing.


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## pilotman (Feb 2, 2006)

I wish them luck with their strategy

I love BMWs, but I can easily lease something else for a while until they come to their senses

If they want to cut production, making leasing difficult and alienate their biggest market and most loyal customers, so be it.

I am sure you heard that BMW is raising its acquisition fee to $725 in October, and the dealer can tack on $200 to that, for a staggering almost thousand dollar BS acq fee

Then take into account the residuals, and the dispo fee if you don't re-up, and leasing a BMW becomes a real joke.

I would prefer a BMW, but at the end of the day I'll take my business elsewhere, Audi, Infiniti etc where I can get discounts, employee discounts, etc....

I will return if BMW improves their leasing program for their customers.

I am not ignorant of their need to take action, I know they had a huge write down, but their residuals were over-inflated for a long time, and this was long in the making.

It is really funny how everyone used to knock Audi's "lower" residuals when comparing BMW and Audi just a year or two ago, but it is clear to me that BMW was overly optimistic and floated BS residuals that could not be supported by the market...and then they paid for it dearly.

Most marketing/sales people will agree the hardest sale is getting someone to switch brands. Instead of encouraging people to stay with BMW, BMW is forcing lessees to look elsewhere. (wait, the economy sucks, my dollar is worth less, but its going to cost me $200 MORE a month to lease my BMW this time around, when there has only been a modest price increase?!).

Hopefully for BMWs sake not too many people will like the more affordable cars they switch to (i.e. Infiniti, Audi, Cadillac, Lexus, Acura you name it).


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## quackbury (Dec 17, 2005)

+ 1,000 to Pilotman.

And exactly to where does BMW AG think they're going to divert production? The EU economy (especially Britain) has been sliding for some time. And if the sub-prime kim-chee really hits the fan (Barney Frank piloting an economic bailout - how scary is THAT?!?!?!) the recession will go global in a heartbeat.

When the Western consumers pull back and stop buying their shoddy products, the Chinese economy will collapse like a Chinese school in an earthquake. Tainted baby formula and all the other problems will just accelerate the fall. Mr. & Mrs. Chin may still be buying a car, but I bet it will be a Buick or a Tata, not a Bimmer.

So who's going to buy all the product BMW AG isn't sending here? 

And even those of us who are loyal to the marque (as opposed to the marketing strategy) can pull back. If leasing an '09 550 costs $300/month more than my '06, I may drive a 335 coupe for a couple of years till Mr. O'Donnell's successor arrives. Do you think the 335 is as profitable to them as the 550?


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## quackbury (Dec 17, 2005)

And another thing....

This is GROSSLY unfair to the dealers. After all the investment in new showrooms, maintenance bays, big bucks diagnostic machines, etc., O'Donnell is pulling the rug out from under them.

Consider: The 1 Series is over-priced for its target market. The E90 is tired; even with the refresh it looks homely compared to the new C Class and A4, and the dealership lot is clogged with M3's nobody wants. The E60 is REALLY tired; it's a fabulous machine, but there's a big segment of the target demographic that wants to be driving the latest design, and the E60 ain't it. (S5 anyone?) As good as the SAV's are, gas prices are hurting X3 and X5 sales; if I'm going to cut corners anywhere, I will buy my soccer mom wife an Envoy, a Pilot or something similar. Heck the Jeep and Dodge dealers will PAY me to take a unit off their lot, and they'll send their kid to mow my lawn for a year in gratitude. And the F01 is uglier than my mother-in-law.

The dealers need help moving product, not a kick in the nuts from the new guy. If I was a dealer principal I'd be sorely pissed (and focusing all my energy, capitaland marketing budget on the Audi, Lexus and Infiniti stores I owned. And maybe even getting my wife a Hyundai Genesis to drive).

Okay, I'm done now. I think.


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## sponge_worthy (May 10, 2006)

quackbury said:


> And another thing....
> 
> This is GROSSLY unfair to the dealers. After all the investment in new showrooms, maintenance bays, big bucks diagnostic machines, etc., O'Donnell is pulling the rug out from under them.


Yeah.. I was at a brand new dealer building last night (just opened like 2 months ago), new //Ms atop sparkling granite floors, fancy BMW Lifestyle boutique, espresso bar etc. -... and the place was dead. Granted it was a Wednesday evening, but still.... I think I was the only customer there - and I was just buying-out my leased car. The place felt spooky...


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## pilotman (Feb 2, 2006)

didn't really consider the impact on North American dealers, wow, just WOW!

***************************************

BMW: ok guys, I know the US economy is in an utter crisis, and the dollar is worth nothing, unemployment is high, and times are tougher than they have ever been since 1930....

Dealer: Great, what are you going to do for us?

BMW: Well, I'm going to give you less cars to lease, and you have to lease them at significantly higher prices, even though they aren't really new models.

Dealer: Uh, ok. Who gets the rest of the cars if you are cutting my allocations?

BMW: Europe, uh, wait, car registrations are down 16% there this year, so maybe we can sell in Asia or Russia.... 
(RTTNews) - European August new car registrations down 15.6% on year, fall 7.3% in July - ACEA

Dealer: Ok, so you can sell more cars elsewhere at a higher profit, what does that do for me?

BMW: Nothing, you don't get any of the money, you get less cars to sell and they are priced higher for the consumer.

Dealer: I don't understand, what are all of my employees going to do, I just installed a new granite countertop and baked a batch of expensive chocolate chip cookies for my customers.

BMW: Cheer up, I am giving you 10 allocations next month, and even though the cars will be much more expensive to lease for your customers, and you won't see a dime of that, just tell them the cars are worth it because they are the Ultimate Driving Machine.


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## quackbury (Dec 17, 2005)

And this doesn't just kill the dealers in sales, it hurts them in service and parts as well. Fewer new models going out the front door means less warranty and maintenance service coming in the back door. 

That's a great way to say "thank you" to the entrepreneurs who made the US BMW's biggest market. Not to mention the CA's, SA's and F&I folks who will also see their paychecks and thier families affected. "I'm from BMWUSA and I have a nice thank you present for you - bend over so I can insert it."

Love to see Adrian, Phillipe and others chime in. (My apologies to New Motors - I can't call you by name since I don't know it!)


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## chrischeung (Sep 1, 2002)

quackbury said:


> And this doesn't just kill the dealers in sales, it hurts them in service and parts as well. Fewer new models going out the front door means less warranty and maintenance service coming in the back door.
> 
> That's a great way to say "thank you" to the entrepreneurs who made the US BMW's biggest market. Not to mention the CA's, SA's and F&I folks who will also see their paychecks and thier families affected. "I'm from BMWUSA and I have a nice thank you present for you - bend over so I can insert it."
> 
> Love to see Adrian, Phillipe and others chime in. (My apologies to New Motors - I can't call you by name since I don't know it!)


Can't the dealers just lay people off? If your client base can't support your business, you need to match them. This is true for any business - reaching equilibrium. I don't know of any company, business or industry that still provides lifetime employment.

Before you lament the lost jobs, those employees will move to other brands that are enjoying increased volume. Potentially, many of the larger BMW dealers will have multi brand franchises to move employees among.


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## Ågent99 (Jan 7, 2002)

I was asked to split this off from the original thread. Lemme know if it is to your liking.


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## sponge_worthy (May 10, 2006)

Ågent99 said:


> I was asked to split this off from the original thread. Lemme know if it is to your liking.


:rofl:

The title is a bit melodramatic... Is this the "Drama Queen Forum"?....


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## New Motors (Mar 24, 2008)

S W, how did every thing go on the purchase. Did you get CPO, rate, 2 payments ?


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## sponge_worthy (May 10, 2006)

New Motors said:


> S W, how did every thing go on the purchase. Did you get CPO, rate, 2 payments ?


Rate, yes , 2 payments, no  ...


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## New Motors (Mar 24, 2008)

Sounds like it worked out for you. Glad to see.


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## bimmernupe (May 11, 2006)

sponge_worthy said:


> Yeah.. I was at a brand new dealer building last night (just opened like 2 months ago), new //Ms atop sparkling granite floors, fancy BMW Lifestyle boutique, espresso bar etc. -... and the place was dead. Granted it was a Wednesday evening, but still.... I think I was the only customer there - and I was just buying-out my leased car. The place felt spooky...


Yeah Passport's new store is beautiful.

To the point of this thread, This is a real kick in the cajones to the dealers.


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## x54.4blue (Sep 17, 2005)

Thats true however I just spoke to a dealer who wants to sell a 2008 535Xi at $2,000 over cost ( he is keeping the P Package discount ) Another one was trying to make $4,000.:tsk:



What do you think a fair profit on a 2008 535XI is?


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## PhillyNate (Jul 27, 2008)

I wrote a couple of weeks ago that I LOVE the brand but felt they are headed down an ugly path with the weak dollar and their damn OBSESSION with crossover type vehicles. Of course someone reponded how wrong I was and how successful the crossovers are at THIS moment. The only announced moves I have agreed with lately are to bring the diesels and four cylinders over. And that's it. IMO BMW needs to refocus on what got them to this point to begin with.


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## buckstop (Jan 31, 2007)

*Senior Management Posturing*

The "new guy on the block" has to sound like he's doing something different. It happens all the time in every large corporation. He puts out his grand pronouncement and who can argue that improving progfitability is a bad thing. The the BMW Board might say," That's great, but let's not overreact to what is going on." Hopefully, we wll see some balance here with the newbie!

Quackbury, I sure hope your mother-in-law doesn't read the "Fest!!"


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## pilotman (Feb 2, 2006)

chrischeung said:


> Can't the dealers just lay people off? If your client base can't support your business, you need to match them. This is true for any business - reaching equilibrium. I don't know of any company, business or industry that still provides lifetime employment.
> 
> Before you lament the lost jobs, those employees will move to other brands that are enjoying increased volume. Potentially, many of the larger BMW dealers will have multi brand franchises to move employees among.


I agree with the concept that people aren't entitled to lifetime employment, but consider this. It sounds like BMW can easily continue to sell a lot of cars here in the US at SOME level of profitability, but they are deliberately choosing to significantly cut production so they can sell cars in other markets at HIGHER profits.

So this isn't really about BMW saying they are cutting allocations because of poor sales, it is just the opposite, they acknowledge great sales but are handcuffing their dealers.

The point is these people aren't losing their jobs because the cars aren't moving, they stand to lose their jobs because BMW WON'T GIVE THEM CARS TO SELL.

And as to the second point, at least in Michigan, no BMW dealer here is "packaged" with any other dealer, they are all stand alone operations, it was explained to me that they are not permitted to sell other brands, only BMW.

(Compare the local Audi dealer, who also sells Nissan, VW and Porsche).


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## Ågent99 (Jan 7, 2002)

sponge_worthy said:


> :rofl:
> 
> The title is a bit melodramatic... Is this the "Drama Queen Forum"?....


Mr. Quackbury had a small hand in the new title of the new thread.... :eeps:


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## adgrant (Aug 13, 2003)

Elias said:


> The auto companies that can make the changes and react to consumer market swings the fastest will be the ones who will survive and thrive in these times. So much for the American auto industry its a shame they just keep making the same mistakes over and over again!!!:dunno::dunno:


I think it will be the Auto companies that can burn through their cash at the slowest possible rate because once the money has gone, they won't be getting any more any time soon. The reason Chrysler doesn't offer leases anymore is they couldn't borrow the money to fund them.


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## Llarry (May 17, 2002)

I don't know whether BMWNA is heading in the right direction or not, but I would like to nominate the orginal poster, damills, for "Best Thread Title" of the year.
:bigpimp:


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## Elias (Jun 26, 2005)

Here, Here !!!!:thumbup:


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## quackbury (Dec 17, 2005)

Actually, the thread was named by the moderator when he splilt it off from another thread. See post #20. But the OP gets credi for coming up with the content, if not the title.


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## want_a_7 (Apr 4, 2006)

Elias said:


> The auto companies that can make the changes and react to consumer market swings the fastest will be the ones who will survive and thrive in these times. So much for the American auto industry its a shame they just keep making the same mistakes over and over again!!!:dunno::dunno:


I think GM is counting on the Volt to put them back on the map.


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## adgrant (Aug 13, 2003)

quackbury said:


> But why would you want to?


Their sales are down 36% this month, so clearly a lot of people agree with you.


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## Llarry (May 17, 2002)

quackbury said:


> Actually, the thread was named by the moderator when he splilt it off from another thread. See post #20. But the OP gets credi for coming up with the content, if not the title.


OK, got it now. Mills gives the Bimmy award back and it goes jointly to you and Agent 99.
Great thread title! :bigpimp:


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## adrian's bmw (Feb 14, 2003)

Thread title should be renamed from

*"New Head of BMWUSA Unveils Master Plan to Destroy the Marque in the US" 
*

_*"New Head of BMWUSA Unveils Master Plan to help centers sell fewer cars, make more profit, and bring value and respectability back to the BMW brand in the US" *_

I'll confess, IMO, BMW exhausted the "pump up the volume"/"push" strategy and it's finally caught up and overflowed demand. The result is excessive, but necessary market allowances, unsustainable residuals and lease programs, centers commiting fratricide for the same client by getting into bloody, low profit deals in order to simply stay in business.

The volume days will indeed be over and so will the giveaway programs where BMW has to beg, scratch, and claw for clients to lease or finance. The volume spigot got buyers and centers drunk with the success of getting crazy deals and helping sell a lot of cars.

In a weird way, the current car market is almost parallel to the housing market. The volume just wasn't sustainable, IMO, not without having to buttress sales with heavy incentives and lots of carrots.

So ironically enough, this is welcome news to me. Will there some clients turned off by the low volume, higher margin strategy? Sure. For what? Paying 5-7% over invoice instead of 1% over on a BMW. If that turns off a current owner or prosepective buyer from BMW, well, good luck to ya and fare thee well. Going to Audi? Cool. Pay for maintenance and your on your own. Plus, their production levels are considerably lower than BMW's- so much for selection and even pricing. MBZ? They're getting out of the volume and incentive game, too. And raising prices. Hech, who isn't raising prices. Pray tell. Oh, and what about MBZ maintenance? Hmm, no free maintenance there, too? On your own. Hmm, what to do.. Lexus? They're getting crushed worse than BMW on sales volume, so does everyone think their volume is sustainable as well and worthy of consideration? No maintenance there, too.

All these incentives and sales volumes have cheapened and even commoditized the brand. I'm not surprised that the marque hasn't been tarnished already due to current BMW drivers who have a BMW that owned or leased because they can't get as much for their BMW trade due to current incentives and the mere fact there's a glut of BMW's out there. So what's there to destroy, damills? It's already been damaged by volume and incentives and I'm grateful that Mr. O'Donnell recognizes this. If this were to continue, BMW would've become luxury equivalent of Big Three. It's time to change tack. And it's long overdue.

I'll get off my soapbox and quit ranting.:soapbox: I'll go ahead and put on my asbestos flame suit on. I'm ready. :flame:


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## BickUW89 (Apr 18, 2008)

adrian's bmw said:


> Thread title should be renamed from
> 
> *"New Head of BMWUSA Unveils Master Plan to Destroy the Marque in the US" *
> 
> ...


Aww, Adrian, come on big fella! You're prolly right, of course, but this doesn't mean the end of $1,000 over ED invoice for 'Festers, does it?


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## adrian's bmw (Feb 14, 2003)

BickUW89 said:


> Aww, Adrian, come on big fella! You're prolly right, of course, but this doesn't mean the end of $1,000 over ED invoice for 'Festers, does it?


They started with the 1, didn't they? Low production car.. no ED allocations.

That's a tough one though. I think that once you start seeing availability whittle down for domestic delivery, many CA's will wise up and realize that it's hard to make a paycheck on $1,000 over invoice deals and getting a mini commission from free ED allocations when you're selling fewer cars. It's easy and tempting for clients to turn to ED and try and get those deals, but those days are numbered, IMO, especially with US allocations going dramatically downward. Expect the same to happen to ED, IMO. I think ED will run out of allocations and then tell US centers, if you want to do ED, get it from your allocation... it's happened before. It'll happen again. Watch.


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## TMQ (Jun 3, 2004)

In reality, the car business has way too much supply, and now that the economic reality is setting in, it's clear that the demand is really not that high. It was artificially high because everyone's house was artificially worth a lot more. Just like some homeowners can't really afford the houses, some car owners can't afford the cars they are driving. This whole bubble needs to burst, and let everything become clear and start over. 

Businesses need to adjust. Note that for BMW, the 7 series makes 5% per car, while the MB S class makes 20% profit (this is from the Roundel 7 series article). I think a business built on volume alone just can't sustain. Besides, if everyone drives a BMW, then what's special about it? If I were the boss at BMW, I would do the same. 

By the way, if you really want a BMW, there are many out there, new and used.


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## adrian's bmw (Feb 14, 2003)

TMQ said:


> In reality, the car business has way too much supply, and now that the economic reality is setting in, it's clear that the demand is really not that high. It was artificially high because everyone's house was artificially worth a lot more. Just like some homeowners can't really afford the houses, some car owners can't afford the cars they are driving. This whole bubble needs to burst, and let everything become clear and start over.
> 
> Businesses need to adjust. Note that for BMW, the 7 series makes 5% per car, while the MB S class makes 20% profit (this is from the Roundel 7 series article). I think a business built on volume alone just can't sustain. Besides, if everyone drives a BMW, then what's special about it? If I were the boss at BMW, I would do the same.
> 
> *By the way, if you really want a BMW, there are many out there, new and used *.


Thanks for a nice post.

And what I've highlighted in your post lies the problem. The mere fact that there are many out there takes away from the exclusivity of this brand and that's why I think the volume/push strategy *failed*. The title of this thread has it all wrong! :rofl: IMO, in O'Donnell's eyes, the brand was damaged by volume and lack of exclusivity. The volume fed on itself so much that it became so engorged that the residuals couldn't be supported.


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## rmorin49 (Jan 7, 2007)

I bought BMW AG stock about 6 months ago. It has declined in value about 40%. This says it all.


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## adgrant (Aug 13, 2003)

rmorin49 said:


> I bought BMW AG stock about 6 months ago. It has declined in value about 40%. This says it all.


The whole market lost about 10% of its value a couple of days ago. If you had bought any other auto stock (or worse, a banking stock) you probably would have been screwed. FDIC insured deposits are the way to go right now. As for BMW stock, you would probably lose less buying an actual BMW.


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## b-y (Sep 14, 2004)

Possibly relevent comments by BMW AG Chief Executive Norbert Reithofer at the Paris Auto Show, courtesy of the WSJ:



> OCTOBER 2, 2008, 1:02 P.M. ET
> *BMW Says U.S. Credit Woes To Hurt Europe Car Values *
> 
> PARIS -- BMW AG Chief Executive Norbert Reithofer said the credit crisis in the U.S. will have a spillover effect that will eventually hurt the value of second-hand cars in Europe.
> ...


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## TMQ (Jun 3, 2004)

Yeah, bring over the 4 cylinder BMWs! Cloth seats, no sun roof, no automatic climate control.


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## quackbury (Dec 17, 2005)

TMQ said:


> Yeah, bring over the 4 cylinder BMWs! Cloth seats, no sun roof, no automatic climate control.


Well THAT will certainly help with brand exclusivity and residuals!


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## X550-ED (Aug 27, 2005)

quackbury said:


> Well THAT will certainly help with brand exclusivity and residuals!


:rofl:


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## digiboy (Oct 3, 2008)

If the idea is to not build cars that cannot be sold or have to be sold at a loss, that's smart. If the idea is to undersell cars and raise their price, then you are pricing yourselves out of competition and that not smart.


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## pilotman (Feb 2, 2006)

BMWs are great cars, and I love them (don't get me wrong) BUT, the 3 series and 5 series are not "exclusive" cars by any stretch.

They are compact/midsize sedans that are somewhat sporty. They have TONS of competition from domestics, asians and europeans. The competitors are largely comparable technology-wise.

People who think a 4 door 3 series BMW is exclusive (a la porsche, aston martin, etc) are kidding themselves.

These are NOT really true sports cars, just great handling coupes and sedans.

Moreover they are not absolutely luxiourious either, like MB, Rolls, Bentley etc.

So now BMW thinks its cars will become more exclusive simply because they limit production? 

It will definitely limit sales, but I would argue they aren't more exclusive per se, its the same, (albeit very good), but same sporting 4 door sedan.

Big deal, most everyone nowadays makes fine "bread and butter" sedans. BMW is nothing special in this regard, other than that their cars handle better (which is very meaningful for you and I, but not a lot of buyers)


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