Firm charges European customers almost £40k more for the SUV than those in North America
10 November 2009

BMW is set to charge European buyers of its new ActiveHybrid X6 up to £37,709 more for the petrol-electric four-wheel drive than customers in North America when deliveries begin in early 2010, according to official pricing made public last week.

Potential customers in left-hand drive European markets have already begun questioning the new car’s lofty 102,000 euro (£90,979) price tag.

BMW X6 ActiveHybrid first drive reviewSee the hi-res pics of the BMW X6 ActiveHybrid

By comparison, North American buyers of the ActiveHybrid X6 are being asked to hand over $89,500 – a figure which, on today’s Euro/Dollar exchange rate, relates to €59,723 (£53,270).

This represents a difference of €42,277 (£37,709) or over 41 per cent between the price of the new car in Europe and the same model in the US.

Asked why it was planning to charge European buyers well beyond that being asked in the US, BMW’s ActiveHybrid X6 project boss, Peter Tuennemann, said: “US car buyers aren’t prepared to pay as much for a hybrid as their European counterparts. There’s more hybrid competition in the US than in Europe and the price reflects this.”

The new ActiveHybrid X6 is not planned to head to the UK owing to BMW’s decision not to offer it in right-hand drive guise because of the continued popularity of diesel powered versions of the sporty SUV.

Greg Kable

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Comments
9

10 November 2009

I hope this makes it quite clear what BMW think of European car buyers. I am sure some of their cars drive well, but they are all overpriced which is one reason i doubt i will ever own one.

So Mr BMW, you got this one wrong. I wont pay for your badge!

10 November 2009

It just goes to show we can certainly afford to be cynical. Maybe the Americans are more discerning than we give them credit for. We have been living in Australia for the past year now and cheap cars are much cheaper here (Ford Focus for around GBP 8500) but an an MB S63 is around GBP220000. I've said it before how is it possible to make a car, ship it 12,000 miles and sell it for 60% of the price it costs in its country of origin? Competition - that is why the X6 hybrid would not sell at $150,000 US

10 November 2009

Simple solution dont buy it then they will think about a more sensible price. Shame they cant think about making a more sensible car either as this is really a pointless daft car.

10 November 2009

[quote Autocar]BMW is set to charge European buyers of its new ActiveHybrid X6 up to £37,709 more for the petrol-electric four-wheel drive than customers in North America when deliveries begin in early 2010, according to official pricing made public last week.

Potential customers in left-hand drive European markets have already begun questioning the new car’s lofty 102,000 euro (£90,979) price tag.

Read the full article[/quote]

Well, the car isn't coming to the UK anyway, but that is what you call pricing a car out of the market.

BMW will either have to drop that ridiculous asking price (you can have a diesel X6 for half of that price) or they will have a hybrid sales flop on their hands.

10 November 2009

A few facts this report and the BMW spokesman could and should have pointed out:

a) the X6 is built in the US. Selling it in the EU means an import tariff. Don't know the figure but would guess min. 10%, perhaps as much as 20%.

b) the US dollar is seriously overvalued. the dollar has further to fall. currently arround 75 on its index, with talk of it going to sub 50. to illustrate this easier in layman's terms on the Big Mac burger index the US is the cheapest place in the world to buy one by a long margin. Once the dollar depreciates further to its realistic ~50 index level the price of imports, raw material, gasoline, etc will go through the roof(barrel of oil >$150) and all US based manufacturers and final sellers will be forced to jack up their prices - like what happened to Iceland, where McDonald's pulled out and new car sales are down >80%.

c) the €102,000 figure for Europe, does it include VAT? In Germany VAT is 19%. There is no equivalent federal VAT tax in the US. There are local state sales taxes but much less than the typical 18-22% level found in the EU. If the euro selling price figure is including VAT, which is ususlly the case, and the US dollar price figure is the bare sales price, then the difference shrinks greatly.

10 November 2009

BMW - Market leaders shoot itself in the foot!

10 November 2009

I regularly travel to the Bay Area, San Francisco and visit BMW showrooms to gawp at their 'parking lots'. The choice is absolutely amazing. On one lot I counted 30 M3s. Just choose your colour and drive away. All models are high spec. BMW's entire range is between 25% and 30% above European pricing. Lease an X5 4.4 with full options for $900 per month. Try doing that in Europe.

Europeans subsidize the US car market. At least with BMW. I thought that was obvious.

10 November 2009

awesome, more anti X6 propaganda !

fact is the hybrid has a place waiting for it in the U.S. line up and it needs to be priced competitively.

same goes for cars like the 328, which euros lament is `overpriced` compared but which for Americans is the first rung model. sticker price therefore has to meet or undercut rivals like the Infiniti G37 + Acura TL. there is no 318, 320, anemic diesel etc.

poster above, it has f. all to do with build location seeing as the X5 and Z4 are also built at Spartanburg. the $ is overvalued against the yuan but it's still weak against the euro, ie. what are you talking about ?

11 November 2009

[quote hedgecreep]the $ is overvalued against the yuan but it's still weak against the euro, ie. what are you talking about ?
[/quote]

It has nothing to do with exchange rate in the long run - it was the same situation 5 years ago too. It has more to do with - how much can we get away with charging?

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