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BMW & Gray Market (archive)
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Posted by z8 bob on November 29, 2000 at 11:52:13:

In Reply to: Re: Yes More Z8's ALLOCATED to USA posted by Z8Mania on November 29, 2000 at 06:27:47:

I am sure that there has been significant dealer pressure on BMW to reallocate the cars to increase USA Dealer's sales (& Profits) but if supply rises to meet demand, the margins may shrink. In the end, highly inflated values for the cars are not in the best interests of BMW. Remember the MSRP is $128 not $200. BMW obviously has held the line as the 2001 cars are the same MSRP as the 2000s

Gray cars are also a tremendous hassle for both the dealers and BMWNA since the buyers of those cars always go nuts when they find out that the dealer network will not support their cars. A serious public relations problem for BMW and the individual dealerships.

Bob,
One thought that occured to me is that the dealers really arent the ones making big profits off grey market cars, but some dealers make big profits off their US cars, so perhaps BMW is (on purpose or not) actually just changing who the "profiteers" are? :-)




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