BMW Shaft British Buyers

Sunday, 31. August 2008

My quote of the week goes to a spokesman for BMW‘s UK operations following an announcement that BMW cars were to receive a substantial price hike. He was trying to reassure us in the UK that we were not included in the expected increases. The company had issued a profit warning and said that due to increased oil and raw material costs they would be forced to increase prices – but not in the UK – he said, ‘BMW sales in the US are down quite a bit, so the US will be taking the lion’s share of the price rises and volume cuts. The UK is stronger than the global market so UK consumers are in a much stronger position’. So there you have it BMW rewrite the laws of economics. In a failing reducing but previously strong market you stimulate growth by increasing prices but in a strong market where demand is high you leave prices where they are! I think you had better watch this space and if you are thinking of getting a BMW I’d move sooner rather than later – or do you think I have it wrong – after all I am but a simple accountant! By Graham Hill