USA: BMW offers its own 'clunker' incentive
Author: just-auto.com editorial team | 29 July 2009
BMW is offering US buyers who don't qualify for the government's 'cash for clunkers' fuel economy-based trade-in programme a US$4,500 rebate on two diesel models to woo new customers.
The discounts apply to the 335d sedan and X5d SUV and will run until 31 August. BMW said the move would showcase its diesel vehicles, which account for more than half of its global sales, in the US.
Chrysler last week announced a scheme that effectively extends the US$4,500 rebate to all buyers and doubles it for those qualifying for the government programme, officially called the Cash Allowance Rebate System, or CARS.
US buyers became eligible for credits of up to $4,500 on 24 July under federal incentives intended to speed the junking of older, less fuel efficient vehicles. The rule-burdened $1bn programme sets a $45,000 retail price ceiling on new vehicles, ruling out the $51,200 X5d. The base 335d starts at $43,900.
Diesels account for less than 3% of US new vehicle sales, according to JD Power, but BMW wants to open up a market for diesel-powered luxury models.
The company sold 487 units of the 335d in the first half, or about 1% of 3-series volume. It also sold 1,655 X5 diesels, or about 13% of the total.
Sectors: Retailing, marketing & distribution, Vehicle manufacturers, Vehicle markets
Companies: BMW, Chrysler, JD Power
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There are currently 4 comments on this article
Took a look at the letters to the editor in Automotive News earlier, and I'm not so sure I would call it a SMALL panic. But... I think dealers who have take the time to document everything correctly have to worry only about how long their money is tied up. They'll get paid eventully.
Something that has bothered me from the start... Our clueless Congress insisted that the vehicles traded be disabled, regardless of actual condition... "gotta get those poluting old guzzlers off the road..." as Senator Windbag from the great state of confusion no doubt opined. But, a lot of the eligible trades are not that old, and many of them are servicable old cars and trucks that are simply worth less than $3,500-4,500.
Have our legislators ever seen the age and condition of the cars that the poorest ~40% of Americans are driving to work and transporting their families in? I would wager that at least half of the "clunkers" turned in could be sold for say $1-2,000 each, plus one honest-to-god, dangerous, smoke belching clunker that shouldn't be on the road. The governments money would go further, and a low income consumer would be better off. Wouldn't this be a win / win for everyone but the sodium silicate suppliers?
billyjoejimbob said at 7:50 pm, July 31, 2009
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