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Gamite
03-12-2009, 11:07 AM
FRANKFURT -- German carmaker BMW AG said Thursday its net profit fell 90 percent in 2008 as the global economic crisis cut into demand for its sports and luxury cars.
In an unexpected preliminary earnings release, the Munich-based company said its net profit for the full year dropped to 330 million euros ($416 million) in 2008 from 3.1 billion euros in 2007.
Total revenues fell 5 percent to 53 billion euros from 56 billion euros in 2007.

BMW said in addition to the weak car markets in 2008, the company was affected by 2.4 billion euros in costs to cover bad debts, one-time personnel costs and provisions to cover risks on used car markets.
The company, which is scheduled to release its full earnings report on March 18, did not provide fourth quarter 2008 figures.

BMW also didn't provide an outlook for the full year, though the management made an effort to reassure its investors.

"The BMW Group has been able to make improvements at an operating level in the midst of extremely difficult economic times," Norbert Reithofer, BMW's chief executive said in the release.
"Cost structures have been further optimized, and thanks to rigorous management of free cash flow, the BMW group is in a very solid financial position."
BMW said earnings before interest and taxes, a measure of operating profit, fell 78 percent to 921 million euros from 4.2 billion euros in 2007.

dtthiaga
03-12-2009, 11:31 AM
I keep getting calls from BMW to buy a new car again.

I think they are doing okay, but you could sort of see their desperation.
They had a tough year in 2008, with the dollar being on par and people being pissed about US and Canadian prices.

I wonder what BMW Canada's revenue numbers were. I know a lot of people are pissed at their business processes; charging insane money for a recall letter, and getting in bed with RIV.

Gamite
03-12-2009, 12:53 PM
Well they lost us as a customer, we went to Benz, cuz the ML was 10 grand cheaper than the X5.

europrince
03-12-2009, 12:54 PM
Well, they're still in the black.

TNation
03-12-2009, 01:19 PM
at least they are making money, unlike most auto companies.

tlaselva
03-12-2009, 01:35 PM
They're still turning a profit, which is an accomplishment in itself.

BMW really needs to get their insentives in-line with their competitors.

I'm considering a new BMW this summer, but their insentives s*ck in comparison to Merc or Infinity. Merc is very are/will be very aggresive, but the official word is BMW will not look at matching them. This will inevitably cost them sales, likely mine too.

Gamite
03-12-2009, 02:13 PM
They're still turning a profit, which is an accomplishment in itself.

BMW really needs to get their insentives in-line with their competitors.

I'm considering a new BMW this summer, but their insentives s*ck in comparison to Merc or Infinity. Merc is very are/will be very aggresive, but the official word is BMW will not look at matching them. This will inevitably cost them sales, likely mine too.

which was the case with us.

europrince
03-12-2009, 02:17 PM
^ That is the difficulty with high end brands, be they cars, clothes, etc. It's a fine line between offering sales incentives or discounts, and devaluing the brand. That is probably BMW's reasoning.

Gamite
03-12-2009, 02:47 PM
^ That is the difficulty with high end brands, be they cars, clothes, etc. It's a fine line between offering sales incentives or discounts, and devaluing the brand. That is probably BMW's reasoning.

I think one of the main reasons for the large price discrepancy is that BMW Canada did not adjust their prices as much as Benz when the dollar was on par with the US.

This is why the C63 is cheaper than the M3 in Canada, but more expensive everywhere else in the world.

C63: $63,000 CAD
M3 Sedan: $69,000 CAD

///MG
03-12-2009, 05:55 PM
I agree with you.

In addition, you have to look at the entire car market when comparing prices. In the end, consumers have a variety of products to choose from, both new and used vehicles.

For the last year I've been thinking about getting an 2005-2006 M3 in 2010. Right now it looks like I might wait an extra year, save some money and in 2011 get myself a DB9 or a V8 Volante...

There's a lot of options out there and new cars are considerably overpriced.

dtthiaga
03-12-2009, 07:09 PM
Well they lost us as a customer, we went to Benz, cuz the ML was 10 grand cheaper than the X5.

I was going to buy another BMW but they were not playing fair at all, and kept telling me, you'll be back. A bit too cocky for my liking; Ive bought two BMWs from them already.

Might looking into a Benz or Lexus. Maybe the new TL.

TNation
03-12-2009, 07:36 PM
^ is-f !!!!

tlaselva
03-12-2009, 09:07 PM
Take for example, when I bought my E46 M3 in 2002, there was a 3 to 4 month waiting list for one. There were no new E46 M3 anywhere to be seen at the dealerships, they were all sold before the cars were even brought over to N/A. I had to buy the M3, without so much as a test drive, there just weren't any that were available.

Last summer, every BMW dealership I went to had new, up for sale M3's in the showrooms, this all within a few months of the M3's being released. Marinello had two new ones in the showroom, and had a few more in the back. Walked into Downtown BMW, a brand new, 2door M3 for sale on the showroom floor.

V10 Power
03-12-2009, 10:16 PM
Benz has some good "deals" right now because they are aggressively oversubsidizing their residuals (the same thing that got everyone into this mess in the first place). They can do it for now but they will pay for it later....BMW is taking a conservative view and decreasing the risk they are putting in the market. Much smarter in the long term to ensure profitability.

slemmer
03-13-2009, 12:16 AM
I think it's snob appeal, however, those two brands drive differently.

MiroE36
03-13-2009, 08:51 AM
the only thing here is to see how 2009 turn out

europrince
03-13-2009, 10:03 AM
I agree with you.

In addition, you have to look at the entire car market when comparing prices. In the end, consumers have a variety of products to choose from, both new and used vehicles.

For the last year I've been thinking about getting an 2005-2006 M3 in 2010. Right now it looks like I might wait an extra year, save some money and in 2011 get myself a DB9 or a V8 Volante...

There's a lot of options out there and new cars are considerably overpriced.

Or you can save that money and buy a property...or if you already have one, pay down your mortgage :)