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      08-16-2019, 03:32 PM   #6
alex2364
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Quote:
Originally Posted by xlover View Post
Their strategy in the US looks to be optimize per unit profitability and add more models to drive the incremental growth units...

3 significant moves i have observed:
1. Higher lease rates on traditionally subsidized models
2. Small incremental profit drivers: reduced after sale support (no more free wipers, etc) and silly things like subscription charges for carplay or potentially charging for other in car apps
3. more variety of models to choose from

I think only #2 is actually a risk to their business, there was no real reason to have the lowest lease rates of the german 3 other than pure unit movement goals, as long as they are competitive with the other two german brands they will not have an issue.
Additionally, Even with the traditionalist frustration in moves expanding the lineup farther away from core BMW historical competency (sport sedans), models like the gran coupes and expanded Xseries lineups have been driving growth.
The major consumer knock on lux cars overall is the "nickle and dime" optics. Packaging options seemed like a step in the right direction to improve that issue for the general market (again traditionalists love to pick and choose a la carte but that isn't a general market desire)... i think these subscriptions for things that are free on other brands is going to make it harder to market outside their existing consumer base. EG someone upgrading from ford or toyota is not going to want to pay for something free on their previous vehicle AND is free on the other lux brands they are cross shopping, small things like this leave an outsized bad impression on conquest opportunities
I mostly agree with this. These are the only things we can see from a consumer standpoint. I believe they have also cut back on dealer support within the past several years. I have seen a lot of long time BMW client advisors leaving within the past several years and if you read between the lines, they're just not getting paid like they used to.

A couple other things they have cut back on recently:

1. Euro delivery incentive
2. Maintenance reduction and no transfer
3. CPO warranty
3. Lease end buyout incentives
4. Demo lease incentives
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