BMW 1 Series Coupe Forum / 1 Series Convertible Forum (1M / tii / 135i / 128i / Coupe / Cabrio / Hatchback) (BMW E82 E88 128i 130i 135i)
 





 

Post Reply
 
Thread Tools Search this Thread
      08-14-2007, 07:46 AM   #1
SCA
Brigadier General
SCA's Avatar
United_States
563
Rep
3,742
Posts

Drives: Multiple BMWs
Join Date: Apr 2005
Location: 🇺🇸

iTrader: (0)

Tom Puves, BMW NA CEO

in an interview with Automotive News said the euro:dollar ratio will affect 1 Series pricing, which has not been set - but, he added, "We can deal with it."

:frown:
Appreciate 0
      08-14-2007, 08:04 AM   #2
ducati
First Lieutenant
11
Rep
394
Posts

Drives:
Join Date: Aug 2007

iTrader: (0)

Bummer. I bet the 3's will move up, too, allowing more room on the bottom.
Appreciate 0
      08-14-2007, 08:10 AM   #3
WolfsburgerMitFries
Lieutenant
WolfsburgerMitFries's Avatar
12
Rep
445
Posts

Drives: BMW 3er
Join Date: Oct 2006
Location: Lexington, KY

iTrader: (0)

The 3's pricing already moved up with the introduction of the E92 and E93. BMW has already made room at the bottom for the 1. And the dollar keeps slipping against the euro. If you buy European food items in the grocery store, you've witnessed significant inflation over the last 5 years. Fuck Geroge Bush and the Republicans, they're making a complete mess out of many aspects of this country...its not just limited to Iraq.
Appreciate 0
      08-14-2007, 08:18 AM   #4
Tijuana
Second Lieutenant
5
Rep
217
Posts

Drives: 535xi
Join Date: Jun 2007
Location: Indianapolis

iTrader: (0)

Dealing with it doesn't necessarily mean pricing it higher.
Appreciate 0
      08-14-2007, 08:20 AM   #5
Brookside
Major
244
Rep
1,136
Posts

Drives: 2016 228i M-Sport
Join Date: Jan 2007
Location: KCMO

iTrader: (0)

I think BMW is hedged all over the place on short-term and long-term valuations of the $. At least one of the business magazines, Forbes, predicts dollar to euro rates leveling and dollar rising in value in 18-24 months.
Of course predictions don't amount to a hill of beans, but the American economy is going into an area of post-industrialization where we specialize in ideas and "soft" products rather than smokestack industries. So there is this volatility not in a market sense but at a stage of development that is in unchartered unknown unpredictable territory. Exciting stuff.


The other thing is BMW/NA itself and Tom Purves in particular. I don't think BMW's US arm is exactly the farm team for the major (Munich) leagues.
Purves is smooth, cosmopolitan, but I think he has little or no power at all within the organisation...it's the people who run Spartanburg and Designworks who are the influential US employees on career track..
Appreciate 0
      08-14-2007, 08:24 AM   #6
larryn
Lieutenant General
United_States
2146
Rep
10,176
Posts

Drives: '97 332ti, '21 X5 45e, '16 GT4
Join Date: May 2005
Location: Seattle

iTrader: (2)

The 3's pricing went up with the introduction of more powerful powerplants, justifiably. BMW (both AG and USA) can't bury their head in the sand and not take into account the rest of the pricing in the US. Their competition has been nipping at their heels, closer and closer, for the past 5 years, and they cannot afford to lose out to them, even if it makes the profits dip a bit.

This has nothing to do with GWB, though the nearsighted might wish to simplify things into a tidy package that makes absolutely no sense. (and I'm a Dem)
Appreciate 0
      08-14-2007, 08:51 AM   #7
SCA
Brigadier General
SCA's Avatar
United_States
563
Rep
3,742
Posts

Drives: Multiple BMWs
Join Date: Apr 2005
Location: 🇺🇸

iTrader: (0)

In a follow-on story, Automotive News added, "Pricing isn't known, but the 1-Series will likely start below the 3-Series."

Appreciate 0
      08-14-2007, 08:54 AM   #8
Brookside
Major
244
Rep
1,136
Posts

Drives: 2016 228i M-Sport
Join Date: Jan 2007
Location: KCMO

iTrader: (0)

Quote:
Originally Posted by TheUltimateDriver View Post
In a follow-on story, Automotive News added, "Pricing isn't known, but the 1-Series will likely start below the 3-Series."

So Homer Simpson moonlights as a writer after a hard day at the nuclear
(nu-cleer) plant? D'oh!

Appreciate 0
      08-14-2007, 08:56 AM   #9
joelk
Lieutenant Colonel
joelk's Avatar
United_States
37
Rep
1,680
Posts

Drives: Space Gray E90 M3
Join Date: Mar 2007
Location: Atlanta

iTrader: (0)

imho:

1) bmw needs to gain a foothold in the US market with the 1 series. for this reason there is incentive for them to aggressively price the car (at least the 128 ... perhaps the 135 retains a premium as what i believe is referred to as a halo car). i see it similarly to microsoft introducing the xbox ... the analogy is far from perfect but my point is that i believe, in the short term, market share is paramount to revenue/car.

2) bmw can't price the car out of the bounds set by the other players in the market and their own models. the market and their other cars (e.g. 3 series) have defined a competitive range already.

for these reasons, i believe bmw is constrained into a certain price range and we shouldn't be especially worried.

how long till our verbose friend from munchen arrives? :biggrin:
Appreciate 0
      08-14-2007, 09:01 AM   #10
Brookside
Major
244
Rep
1,136
Posts

Drives: 2016 228i M-Sport
Join Date: Jan 2007
Location: KCMO

iTrader: (0)

Speaking of missing Euro's...I wish EniLab contributed to the site. I've asked him a coupla times to at least do some time sharing between GCF and here...he is all up on economics and marketing...with valuable info.
Appreciate 0
      08-14-2007, 09:38 AM   #11
hector
Captain
36
Rep
713
Posts

Drives: e46 330ci, e92 335i, 2008 128i
Join Date: Sep 2005
Location: virgo supercluster bwo Pennsylvania.

iTrader: (0)

Quote:
Originally Posted by WolfsburgerMitFries View Post
... And the dollar keeps slipping against the euro. If you buy European food items in the grocery store, you've witnessed significant inflation over the last 5 years...
that's why i only eat food imported from China!
Appreciate 0
      08-14-2007, 09:40 AM   #12
ibeam81
Captain
United_States
20
Rep
722
Posts

Drives: 2016 EBII M235i, 2004 Acura TL
Join Date: Jul 2007
Location: Germantown, MD

iTrader: (0)

Quote:
Originally Posted by hector View Post
that's why i only eat food imported from China!
Appreciate 0
      08-14-2007, 09:59 AM   #13
PierrePHRWEAUX
Private
0
Rep
50
Posts

Drives:
Join Date: Jun 2007

iTrader: (0)

Quote:
Originally Posted by WolfsburgerMitFries View Post
The 3's pricing already moved up with the introduction of the E92 and E93. BMW has already made room at the bottom for the 1. And the dollar keeps slipping against the euro. If you buy European food items in the grocery store, you've witnessed significant inflation over the last 5 years. Fuck Geroge Bush and the Republicans, they're making a complete mess out of many aspects of this country...its not just limited to Iraq.
I don't think George Bush is responsible for the strength of the Euro. And in lots of aspects, this is good for US economy, but obviously not for German car buyers. Even in this situation, BMW is able to keep US cars cheaper than they are in Europe. I guess the 'extra-money' made with cars built in US and sold in Europe (X5 and Z4) allows them to underprice the cars built in Europe and sold in US. That's why they announced that they will increased the production capacity in US in the next years.
Appreciate 0
      08-14-2007, 10:51 AM   #14
hector
Captain
36
Rep
713
Posts

Drives: e46 330ci, e92 335i, 2008 128i
Join Date: Sep 2005
Location: virgo supercluster bwo Pennsylvania.

iTrader: (0)

Quote:
Originally Posted by PierrePHRWEAUX View Post
...strength of the Euro...they announced that they will increased the production capacity in US in the next years.
the nice thing about declining into 3rd world status is that eventually there will be demand for labor to again be performed in this country.
Appreciate 0
      08-14-2007, 12:03 PM   #15
WolfsburgerMitFries
Lieutenant
WolfsburgerMitFries's Avatar
12
Rep
445
Posts

Drives: BMW 3er
Join Date: Oct 2006
Location: Lexington, KY

iTrader: (0)

Quote:
Originally Posted by PierrePHRWEAUX View Post
I don't think George Bush is responsible for the strength of the Euro.
Spin doctor...of course he's not responsible for the valuation of the Euro, but his economic policy and geopolitical disasters are directly responsible for the decline of the Dollar in relation to the Euro.
Appreciate 0
      08-14-2007, 12:14 PM   #16
ducati
First Lieutenant
11
Rep
394
Posts

Drives:
Join Date: Aug 2007

iTrader: (0)

Quote:
Originally Posted by Tijuana View Post
Dealing with it doesn't necessarily mean pricing it higher.
Very true, de-contenting is the avenue VW is currently pursuing on their 2008 models.
Appreciate 0
      08-14-2007, 02:00 PM   #17
lib
Major
lib's Avatar
141
Rep
1,401
Posts

Drives: <This space for rent>
Join Date: Apr 2008
Location: ATX

iTrader: (0)

Quote:
Originally Posted by Tijuana View Post
Dealing with it doesn't necessarily mean pricing it higher.
Very true. "Dealing with it" could mean anything from raising the price and coping with lower sales to accepting reasonable losses and placing it as a "loss leader" for the brand for a short time.

Without more context you really have no idea what was meant by that comment.
Appreciate 0
      08-14-2007, 09:12 PM   #18
imported_THE JEDI
Enlisted Member
1
Rep
42
Posts

Drives:
Join Date: Jul 2007

iTrader: (0)

Quote:
Originally Posted by WolfsburgerMitFries View Post
The 3's pricing already moved up with the introduction of the E92 and E93. BMW has already made room at the bottom for the 1. And the dollar keeps slipping against the euro. If you buy European food items in the grocery store, you've witnessed significant inflation over the last 5 years. Fuck Geroge Bush and the Republicans, they're making a complete mess out of many aspects of this country...its not just limited to Iraq.

+1
Appreciate 0
      08-14-2007, 09:47 PM   #19
amdmaxx
My gift Registry: M2
amdmaxx's Avatar
United_States
118
Rep
1,432
Posts

Drives: Future Mowner of Monster
Join Date: Nov 2005
Location: USA

iTrader: (0)

Smaller CEO bonuses?


Quote:
Originally Posted by lib View Post
Very true. "Dealing with it" could mean anything from raising the price and coping with lower sales to accepting reasonable losses and placing it as a "loss leader" for the brand for a short time.

Without more context you really have no idea what was meant by that comment.
Appreciate 0
      08-14-2007, 11:34 PM   #20
Nixon
Banned
57
Rep
1,396
Posts

Drives: :
Join Date: Jul 2007
Location: :

iTrader: (0)

Quote:
Originally Posted by WolfsburgerMitFries View Post
The 3's pricing already moved up with the introduction of the E92 and E93. BMW has already made room at the bottom for the 1. And the dollar keeps slipping against the euro. If you buy European food items in the grocery store, you've witnessed significant inflation over the last 5 years. Fuck Geroge Bush and the Republicans, they're making a complete mess out of many aspects of this country...its not just limited to Iraq.
+2

No administration has done more to damage the value of the dollar since the USD was taken off the gold standard.

Back in 2003, the Bush administration started touting the benefits of a weaker dollar for US manufacturing. A weak dollar has been pushed as the solution to the trade deficit by the Bush administration. Bush policy affects BMW owners by intentionally making BMW's more expensive in relation to Fords, Chevy's, and Dodges. This is not a mistake, or the will of the market. This is a calculated Bush monitary policy decision to use a devalued dollar to push sales of US cars and other US products by giving US manufacturers a market advantage against companies like BMW.

Bush supporters could argue that it wasn't Bush monetary policies that keeps the dollar devalued, if they had Federal Reserve "M3" figures to prove that Bush wasn't flooding the market by printing massive amounts of dollars. The M3 in this case is not a hot car, but the US Gov't measure of the number of US dollars being put into circulation. Thus the only reliable indicator of the impact of Bush's printing policy on the value of the dollar. This information could absolve Bush's money printing policies from being blamed for the continued devaluation of the dollar if the M3 figures showed Bush wasn't overprinting dollars.

But George Bush ordered the Federal Reserve Bank to stop publishing the M3 numbers.

Let me restate that so the impact can really sink in. Bush is hiding the M3 numbers from the public, which results in the public not having any way of knowing how many US dollars Bush is printing. The M3 data is still collected. The Federal Reserve Bank, the Treasury Dept, and Bush still know the numbers. They are just hiding the M3 data from the public now. So Bush supporters are out of luck when it comes to defending the affect of the Bush administration's money printing policies. Bush effectively ripped the rug out from under you.

Unfortunately this also means that folks who want to prove Bush's money printing policies are damaging the dollar don't have any data to back them up anymore either. But this works in Bush's favor because it makes all of his critics sound like conspiracy theorists without any data to back them up:

http://www.oss.net/extra/news/?modul...icle_sent=true

The first task for anyone who wants to defend Bush's role in the valuation of the dollar, would be to explain why Bush is keeping the M3 data secret. The second task would be to reproduce the M3 data to prove Bush's policies weren't putting too many USD notes into circulation. Anything short of this is just lip flapping and cheerleading for Bush.





The side affect of all this has been that BMW's have become more expensive, and so has gas. Oil is being traded in a devalued dollar, effectively making oil more expensive because the dollar is worth less. But Europe hasn't seen the same percentage increase in gas prices because they are buying oil using devalued USD to buy oil for less Pounds and Euros compared to us here in America.

http://www.stwr.net/content/view/532/37/

If you love to drive BMW's with hot engines without spending tons of money to buy the car and to keep the tank full, Bush is actively working against you.
Appreciate 0
      08-15-2007, 09:22 AM   #21
Big Red One
Private First Class
9
Rep
130
Posts

Drives:
Join Date: Jun 2007

iTrader: (0)

Quote:
Originally Posted by Nixon View Post
A weak dollar has been pushed as the solution to the trade deficit by the Bush administration. Bush policy affects BMW owners by intentionally making BMW's more expensive in relation to Fords, Chevy's, and Dodges. This is not a mistake, or the will of the market. This is a calculated Bush monitary policy decision to use a devalued dollar to push sales of US cars and other US products by giving US manufacturers a market advantage against companies like BMW.
You obviously know what you're talking about and have a firm grasp on economic principles.

What I'm left wondering is: What IS the "right" thing for the president - any president - to do with regard to this situation? If the president pushes a strong dollar, thereby making BMWs more affordable to all of us here on this board, the Big 2.8's UAW employees are going to scream bloody murder and claim that the government is not doing enough to "protect their jobs".

Now, I personally think that that's a problem that the domestic auto makers need to solve on their own by designing, building and supporting products that can compete in the free market - WITHOUT government intervention in economic policies artificially propping their companies up. But it is easy for me to take that stance. Not so easy for the president of the United States, who has a constituency made up of the entire nation, to take that stance. If our next president is a Democrat, you can bet that the current policy of a weak dollar will be continued in order to protect all of those UAW employees who donate money to Democrat candidates.
Appreciate 0
      08-15-2007, 10:26 AM   #22
imported_MPower
Zoom Zoom
38
Rep
1,069
Posts

Drives: 2022 M3 6MT
Join Date: Jun 2007
Location: SoCal

iTrader: (0)

Quote:
Originally Posted by Nixon View Post
The first task for anyone who wants to defend Bush's role in the valuation of the dollar, would be to explain why Bush is keeping the M3 data secret. The second task would be to reproduce the M3 data to prove Bush's policies weren't putting too many USD notes into circulation. Anything short of this is just lip flapping and cheerleading for Bush.
Explain to me why M3 data would prove so much when M1 and M2 would provide exactly the same information (that you are looking for). The amount of US dollars in circulation is not limited to M3.

Now, I am not necessarily saying that you are wrong about the dollar and the economy. The end result, as of now, for the US buyer is higher priced European goods. But then again, you also hear so many people complaining about how many jobs are being sent to other countries, and how many goods are being produced in China (though, the news lately certainly helped China.... [/sarcasm]). There is no question that lowering the value of the dollar would help to adjust the trade defecit. The only problem is that it is very difficult to have it both ways (strong dollar and trade defecit). There was a quote that I heard a long time ago that accurately explains this, "All economic news is bad news." Now, if that makes you want to take the tar and feathers to Bush, be my guest. But personally, Im not going to criticize the guy for effectively targeting a problem.
__________________
In the garage: 2022 G80 M3 Manual - Portimao Blue
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 01:48 AM.




1addicts
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST