Even though BMW is one of the few manufacturers not seeing losses compared to last year, the German automaker isn’t immune to the effects of the struggling U.S. economy.
BMW will not offer any exceptional deals on 2008 model year cars during December, like it usually does. They are trying to increase demand for the 2009 models, though the current offer of 0.9% financing on both the ‘08 550i and M6 will be sure to lure some buyers away from the 2009 models, reports LeftLaneNews.
As a result of the problems plaguing the U.S. economy and the weak dollar to euro exchange rate, the luxury manufacturer hasn’t been growing as much as they’d hoped.
BMW also announced significant cut backs to their U.S. operations. As many as 90 North American employees could be lost in the cuts, many of whom could come from the South Carolina plant that produces the X3 small SUV, which BMW has cited specifically as not being as profitable as expected.
In an attempt to increase profitability, BMW has decided to reduce supply, hoping it will increase demand. As many as 44,000 2009 model year cars intended for the U.S. and Canada have been redirected to other markets including Asia, the Middle East and Europe.
BMW also has plans to introduce smaller engine cars into the U.S. market, potentially including a smaller 2.5 liter V6 for the 3 Series, which shouldn’t be hard since Canadian buyers currently have the option. BMW also recently announced plans for a turbocharged four-cylinder engine, which would be the first BMW four to hit America since 1997. Either of the potential new motors should provide both a lower price and better gas mileage.