chewy
chewy
<--- My future car!
View My AgentSpace

Print this Page | Digg It | del.icio.us

Tags: Audi, BMW, Mercedes, Incentives, Money

Tag Links: Audi, BMW, Mercedes, Incentives, Money

Which German Luxury Giant Spends Most on Incentives?
With the latest news of Toyota spending thousands of dollars in incentives on the Tundra, and Chevy fighting back and raising incentives on the Silverado it is interesting to find out how much luxury companies spend on incentives. The Bloomberg article is about the possibility that Audi will lose money this year in the US because of a weak dollar and money spent on new dealerships. However, the article also touches on the fact that Audi has reduced its incentive spending, but its German competition has only increased incentive spending this year.

"Audi's average U.S. incentive costs per car in the first half were $2,643, an 11 percent decline from a year earlier, Woodcliff, New Jersey-based Autodata said. By comparison BMW's incentives increased 71 percent to $3,838, while Mercedes rose 29 percent to $3,082, Autodata said in a July 3 report."

Is it worth it for German luxury automakers to shell out pickup-style incentives to "manufacture" sales? Read Article
Which German Luxury Giant Spends Most on Incentives?



Comments:

Images hosted in your AgentSpace can now be posted in the comments section using the following syntax (case matters):
[img]IMAGE URL[/img]
Example: [img]http://agent004.myautospies.com/users/150/Sample-Gallery/sample1.JPG[/img]
rg12345rg12345 - 7/10/2007 5:46:04 PM
+6 BoostDrop the Boost Up the Boost
With the crazy exchange rate I wonder even now how can they keep the prices so low. I mean a 40k euros car in europe would translate to 53-55k USD here, at this year exchange rate (avg). Buy they keep the same 40k in dollars also. I know US is a good market, but still, to loose 35% on EURO to USD conversion is not an easy point to take. I understand some makes already announced increases because of that (BMW if I am not wrong).

reply to this comment
chewychewy - 7/10/2007 5:59:22 PMView My AgentSpace
+5 BoostDrop the Boost Up the Boost
Yep, the exchange rate is quite hard to ignore. VW is considering to build a factory in US because of the exchange rate.


truecarlovertruecarlover - 7/10/2007 6:25:20 PM
+2 BoostDrop the Boost Up the Boost
yes that is why BMW and Mercedes build there SUV's here. Isn't the Z4 also built here?


answeranswer - 7/10/2007 7:05:23 PMView My AgentSpace
+3 BoostDrop the Boost Up the Boost
South Carolina.


enthusiastx11enthusiastx11 - 7/10/2007 9:08:51 PM
0 BoostDrop the Boost Up the Boost
correction: just two bmw models (X5 and Z4) and the mercedes ML are built here. the vast majority are manufactured in germany.


enthusiastx11enthusiastx11 - 7/10/2007 9:09:46 PM
-1 BoostDrop the Boost Up the Boost
and despite those incentives, bmw and mercedes models have average sales prices thousands and thousands higher than their competitors.


truecarlovertruecarlover - 7/10/2007 9:25:21 PM
+4 BoostDrop the Boost Up the Boost
enthusiast - aren't the X3's built here? Also - where is the GL Benz buit?


truecarlovertruecarlover - 7/11/2007 7:23:20 AM
+3 BoostDrop the Boost Up the Boost
If I'm not mistaken - the R Class is probably built here too. Also BMW confirmed they will build the X6 here as well.


IamEvilHomerIamEvilHomer - 7/11/2007 12:58:41 PM
+2 BoostDrop the Boost Up the Boost
here is another great article

http://blog.buyingadvice.com/2007/03/investors_unhap.html

bmw is almost 2 times MB and Audi


truecarlovertruecarlover - 7/10/2007 6:27:56 PM
+1 BoostDrop the Boost Up the Boost
Audi has stated before that they are more focused on profits than sales volume in the U.S. The lease price they quoted in the article for the A6 seems to prove that they are serious....that would explain the slowdown in it's sales.

reply to this comment
ATrainATrain - 7/10/2007 7:17:55 PM
0 BoostDrop the Boost Up the Boost
Agreed - I was shopping for a new winter driver. Audi quoted the S4 at list - $53,780 with options - and barely budged plus had an outrageous money factor of 8.

I ended up ordering a 535xi w/ sport package and everything else you can think of - MSRP at $61,420.

Basically, I got a car w/ an MSRP almost $8k more for similar money.


truecarlovertruecarlover - 7/10/2007 9:09:18 PM
+3 BoostDrop the Boost Up the Boost
Well ATrain - I guess you are living proof that amazingbimmer is wrong when he talks about 'people who buy Audi's can't afford BMW's'. On a side bar - talking about BMW and Mercedes for that matter - I would like to see the percentage of AWD vehicles they sell. I see a lot of Xi and 4Matic models here in NY.


IamEvilHomerIamEvilHomer - 7/12/2007 1:49:12 AM
+1 BoostDrop the Boost Up the Boost
you should have bought a 3,2 qusttro

yes amazingidiot is wrong again
i think he is still in jr high
when school is out then we will hear from him


chewychewy - 7/10/2007 8:05:53 PMView My AgentSpace
+2 BoostDrop the Boost Up the Boost
where are the two resident BMW superfans?

I ask them why BMW has to spend about 4,000 dollars to sell each BMW? Kinda like Toyota with the Tundra.

reply to this comment
truecarlovertruecarlover - 7/10/2007 9:05:00 PM
+4 BoostDrop the Boost Up the Boost
chewy - that is a good question. I think that since they build some of there cars here in the U.S. they can remain profitable even though they offer those incentives. All the makes offer them - it's just a matter of who offers more. If Audi builds at least there SUV's here - they would be able to offer a little bit higher incentives and sell more. That said - I don't think they NEED to do it.

reply to this comment
enthusiastx11enthusiastx11 - 7/10/2007 9:11:09 PM
+3 BoostDrop the Boost Up the Boost
and everyone knows that german cars still sell for thousands more than their lexus counterparts. lexus success is based largely on value.

reply to this comment
zorbeezezorbeeze - 7/11/2007 12:42:11 PM
+2 BoostDrop the Boost Up the Boost
"and everyone knows that german cars still sell for thousands more than their lexus counterparts. lexus success is based largely on value."

You're completely wrong with that statement. Lexus prices have gone up. There's a very small difference between Lexus & the Germans. Though, the same can't be said for Infiniti & Acura, they're still pretty much cheaper then Lexus, BMW, Audi & mercedes

reply to this comment
enthusiastx11enthusiastx11 - 7/11/2007 10:33:38 PM
+1 BoostDrop the Boost Up the Boost
'everyone who can afford a lexus can afford a benz or bmw."

hmmm...S550 $89,000 base, LS460 $61,000 base; SL $98,000 base, SC $65,000 base; etc, etc. not to mention that lexus has much more standard equipment than either bmw or mercedes.

please do us the favor of explaining how these very large price differences mean that everyone can afford (or will spend) either a german or japanese car.

reply to this comment
Will_Will_ - 7/11/2007 7:17:40 AM
+4 BoostDrop the Boost Up the Boost
Much of BMW's appeal comes with their Free Maintenance programs. And don't forget that most only lease their vehicles. Agent009, repost the research you did showing it cheaper to own a 3-Series than a Camry. BMW owners enjoy 'value' too apparently.

reply to this comment
Will_Will_ - 7/11/2007 7:18:54 AM
+3 BoostDrop the Boost Up the Boost
...and just wait 'til the 1-Series hits our shores... High school students will be able to lease a 1-Series for probably nothing at all with their summer jobs...


truecarlovertruecarlover - 7/11/2007 7:24:54 AM
+3 BoostDrop the Boost Up the Boost
I like BMW's - but that's part of the problem - it seems like anyone can own one now. But it's a business.


Htay7500Htay7500 - 7/11/2007 12:39:08 PM
+1 BoostDrop the Boost Up the Boost
not to mention the strategy of getting an e-class benz at the price of a ex v6 accord.


david999david999 - 7/11/2007 8:56:55 AM
+2 BoostDrop the Boost Up the Boost

There is nothing wrong with incentives to help sales. Audi's policy in North America is what keeps them well below the competition in terms of sales.
If people were dying to own an Audi this would make sense, but not when they are struggling for sales.

reply to this comment
SteveSteve - 7/12/2007 11:21:34 PM
+1 BoostDrop the Boost Up the Boost
Do "incentives" really matter? In my mind, it's the "bottom line" that matters to a manufacturer. If car maker A offers $3000 incentive per vehicle and makes $6000 margin per unit, and maker B offers $1000 incentive and makes $500 per unit, who's better off?

reply to this comment
IamEvilHomerIamEvilHomer - 7/13/2007 10:36:43 AM
+1 BoostDrop the Boost Up the Boost
true but audi is making big money so what is your point?
To post a comment for this story, you must first Login.

If you do not have an account, you will need to Register (It's Free!).

Most Recent Stories
Which retro ride is the coolest? Challenger, Camaro or Mustang. And how dead IS retro?Mercedes - Benz Review: The GLK, CLC Sport Coupe And SLK-ClassComparison - 2008 Ferrari 599GTB Fiorano and 2008 Aston Martin DBS2010 Chevrolet Camaro OFFICIAL Pictures - The Wait is ALMOST Over!New Photos BMW 3 Series Touring2009 BMW 3 Series New High-Res Wallpapers2009 BMW 6-Series with New Sport Package2009 Maserati Quattroporte S - First DriveFirst Video Of The 2009 BMW 3-SeriesNew M3 Convertible: A disappointment? Audi R8: GT3 spec race car up for saleHonda Releases Civic Type S Fireblade ReplicaIncredible Mercedes SLR McLaren crash in QatarLeaked memo: 2009 Subaru Impreza WRX to get 265 horsepowerThe VW Up! could be changed front-wheel-driveExclusive iPhone Pouch Premiers At Mercedes-Benz Fashion Week Berlin Am I the Only Person Alive Bored Silly By the SLR McLaren?First Lamborghini Gallardo LP560-4 Delivered in USElfin’s Caterham Bashing ‘Type 5’100% Electric Mitsubishi i MiEV Confirmed in 2009BMW M3 vs. BMW 335iAudi RS5: Will it look like this?New BMW 7 And Mercedes S-Class Side By Side: S-Class Still The King?French Auto Spies Get Nabbed By Authorities-So Much For Freedom Of The Press?$27 Million Jaguar XJ13 Le Mans Race Car to Run at Bradford Classic Jaguar Tops J D Power CSI Study For Second Year In a RowThe First Crash of a Maserati GranTurismo (pics)GM dealers buy $1 million in GM stockCadillac CTS coupe and wagon to be produced in LansingSpy Shots: Mercedes SLR McLaren Speedster hits the NurburgringThis Just In: Not All HUMMER Owners Gas-Guzzling Jerks2008 Toyota RAV4 SR180 On Sale UK2009 Infiniti FX50 vs 2009 BMW X6 xDrive50i Subaru WRX STi Spec C - Spy ShotsThe Top 5 Most Beautifully Designed Cars from the Designer of the CenturyThe 2009 Honda Fit and the New American Way2009 Mitsubishi Pajero Sport Suv Unveiled at Moscow Show2008 Nissan Micra 25 Special EditionIs there an uglier pick truck made anywhere?Spy Shots: 2010 Acura NSX interiorMercedes boss confirms full turbocharged lineup within 3 yearsVideo: Porsche’s PDK Gearbox, how it worksBMW's X5 hybrid spied in USMercedes Benz Top QualityTh!nk Ox Electric-car could arrive in 2011New Verso caught undergoing testing by ToyotaSpy shots of the Mercedes-Benz R-ClassSpy shots of the Mercedes SLK with a panoramic glass roofVW's choice eases Chattanooga's past auto snubsKia VG