"BMW's discounting practice in the U.S. leaves us speechless. Since May 2006, BMW has offered structurally higher incentives compared to its peers and there appears to be no light at the end of the tunnel," Frankfurt, Germany-based Dresdner Kleinwort said in a report.
"Incentives stand at an average of $4,125 per vehicle, which is about 60 percent higher compared to Mercedes ($2,573) and Audi ($2,607). Most of these discounts are related to BMW's active move into competitive lease deals," the report said.
"Even discounts on the new X5 (large SUV) are back at $4,490. The 7 Series is supported with $11,345 (Mercedes S class $3,711). Against this diluted pricing level, a 15 percent increase in February unit sales (in the U.S.) is meaningless in our view.
Read Article