BMW profit falls 63%

[dcaron999]

Breaking News from The Globe and Mail
BMW profit falls 63%


GEORGE FREY

Tuesday, November 04, 2008

FRANKFURT — Carmaker BMW AG said Tuesday net profit for the third quarter dropped 63 per cent as the global economic turmoil made consumers more reluctant to shell out for its sports and luxury cars and credit costs made it difficult for consumers and the company to borrow.
The Munich-based company said net profit for the July-September period fell to € 298 million ($375.5-million U.S.) from €803 million a year ago.
“The knock-on effects of the international financial crisis and a downturn in the global economy had a significant negative impact on the performance of the automobile industry,” BMW said in a statement.
“Ongoing consumer reticence on the main sales markets, the weak state of the pre-owned car markets together with difficult refinancing conditions also took their toll on the BMW group, resulting in a perceptible drop in revenues and earnings.”
Sales for the quarter fell 9 per cent to €12.6-billion from €14-billion euros in the same quarter a year ago.
The company said it couldn't give a concrete outlook.
“Due to the worsening of the financial crisis, it is currently impossible to make stable forecasts for the rest of the year and beyond,” BMW said in a statement.
UniCredit analyst Sven Kreitmair said in a research note to investors that the company also indicated that it could rule out “that the risk provisions for bad debts and lease financing will have to be increased again.”
Investors, however weren't daunted. BMW shares were up 8 per cent to €22.20 euros in Frankfurt trading.
The company said overall car production fell 10 per cent to 335,000 cars for the quarter from 372,000 in the year-ago quarter, and deliveries of its flagship BMW branded cars saw a 5.3 per cent decline in deliveries, to 290,661 cars from 306,964 a year earlier.
The motorcycles division, meanwhile, saw a 15 per cent increase in production to 23,284 motorcycles, while ultra-luxury brand Rolls Royce also increased deliveries, by 17 per cent to 332 cars delivered from 285 in the year-ago period.
The compact Mini brand reported a 1.4 per cent gain in deliveries for the quarter to 58,105 from 57,315 a year ago.
The company said its results were negatively impacted by the higher provisions for bad debt risk related to pre-owned car markets.
BMW said it raised its provision for residual value risks and credit risks especially for used car loans during the quarter by €342-million, bringing that total expense recognized in the first nine months to over €1-billion.
The company said its results were impacted by a further €258-million in charges during the nine months related to cutting its work force.
In terms of regions, BMW said European sales developed unevenly. It said it saw “positive impetus” in some countries including Germany, France, Belgium and Luxembourg, but nine month European sales fell 5 per cent overall.
In North America, the company sold 6 per cent less cars than in the year ago quarter, “dominated by the ongoing financial crisis,” and an increase in fuel prices, BMW said.
Meanwhile, the company saw “sharp growth” in central and Eastern Europe as well as in Latin America and Asia.
Total Asian sales were up 9.4 per cent in the first nine months, with China, Hong Kong and Taiwan sales up 26 per cent compared with the January-September period a year ago. Meanwhile, sales in Japan fell by 16 per cent for the period.
© The Globe and Mail

[bmwqc]

At least they made a profit. Can't say the same for the big three.




Breaking News from The Globe and Mail
BMW profit falls 63%


GEORGE FREY

Tuesday, November 04, 2008

FRANKFURT — Carmaker BMW AG said Tuesday net profit for the third quarter dropped 63 per cent as the global economic turmoil made consumers more reluctant to shell out for its sports and luxury cars and credit costs made it difficult for consumers and the company to borrow.
The Munich-based company said net profit for the July-September period fell to € 298 million ($375.5-million U.S.) from €803 million a year ago.
“The knock-on effects of the international financial crisis and a downturn in the global economy had a significant negative impact on the performance of the automobile industry,” BMW said in a statement.
“Ongoing consumer reticence on the main sales markets, the weak state of the pre-owned car markets together with difficult refinancing conditions also took their toll on the BMW group, resulting in a perceptible drop in revenues and earnings.”
Sales for the quarter fell 9 per cent to €12.6-billion from €14-billion euros in the same quarter a year ago.
The company said it couldn't give a concrete outlook.
“Due to the worsening of the financial crisis, it is currently impossible to make stable forecasts for the rest of the year and beyond,” BMW said in a statement.
UniCredit analyst Sven Kreitmair said in a research note to investors that the company also indicated that it could rule out “that the risk provisions for bad debts and lease financing will have to be increased again.”
Investors, however weren't daunted. BMW shares were up 8 per cent to €22.20 euros in Frankfurt trading.
The company said overall car production fell 10 per cent to 335,000 cars for the quarter from 372,000 in the year-ago quarter, and deliveries of its flagship BMW branded cars saw a 5.3 per cent decline in deliveries, to 290,661 cars from 306,964 a year earlier.
The motorcycles division, meanwhile, saw a 15 per cent increase in production to 23,284 motorcycles, while ultra-luxury brand Rolls Royce also increased deliveries, by 17 per cent to 332 cars delivered from 285 in the year-ago period.
The compact Mini brand reported a 1.4 per cent gain in deliveries for the quarter to 58,105 from 57,315 a year ago.
The company said its results were negatively impacted by the higher provisions for bad debt risk related to pre-owned car markets.
BMW said it raised its provision for residual value risks and credit risks especially for used car loans during the quarter by €342-million, bringing that total expense recognized in the first nine months to over €1-billion.
The company said its results were impacted by a further €258-million in charges during the nine months related to cutting its work force.
In terms of regions, BMW said European sales developed unevenly. It said it saw “positive impetus” in some countries including Germany, France, Belgium and Luxembourg, but nine month European sales fell 5 per cent overall.
In North America, the company sold 6 per cent less cars than in the year ago quarter, “dominated by the ongoing financial crisis,” and an increase in fuel prices, BMW said.
Meanwhile, the company saw “sharp growth” in central and Eastern Europe as well as in Latin America and Asia.
Total Asian sales were up 9.4 per cent in the first nine months, with China, Hong Kong and Taiwan sales up 26 per cent compared with the January-September period a year ago. Meanwhile, sales in Japan fell by 16 per cent for the period.
© The Globe and Mail

[Gregster]

BMW is trying to offload cars.

Financing is at 1% and lease is at 2% on certain models... M models included. The 1er is still at 6% finance.

You can finance a 4dr 335i sport pack for cheaper then a 135i. Around 800$ a month tax in with 5k down and Accent trade

Since I got my new job I've been seriously considering picking something new and cooler. Maybe even a pre owned E46 325i would be a good choice. Either way I have no choice but to get a BMW, Andrei has his musket against my head. :p

[dcaron999]

I've been seriously considering picking something new and cooler. Maybe even a pre owned E46 325i would be a good choice.

The BMW Pre-owned site search engine reveals nothing under their lowest price option @ $25K ...

There's a ton of pretty nice E46's on sale on LESPAC for under $15k.
See this 330xi --> http://www.lespac.com/search/detail.php?a=7118189

[Gregster]

The BMW Pre-owned site search engine reveals nothing under their lowest price option @ $25K ...

There's a ton of pretty nice E46's on sale on LESPAC for under $15k.
See this 330xi --> http://www.lespac.com/search/detail.php?a=7118189


I found a few low mileage (40-50k) examples forsale around various dealers for around 19-22k. Anything under 13-15k is asking for trouble... I rather pay a tad more for something newer with less KM's and avoid having to change parts for atleast one year or so.

[Gregster]

08 C230 Sport pack is a really good deal for 800$ more. Considering you can't get a 323i sport pack.. too bad :(

[dcaron999]

08 C230 Sport pack is a really good deal for 800$ more. Considering you can't get a 323i sport pack.. too bad :(
The new Merc C class is really nice. I saw a black 2008 C300 in a parking lot over here, and was impressed by the classy and sporty look...

[bmwqc]

Has M-B gotten over their quality control problems?



The new Merc C class is really nice. I saw a black 2008 C300 in a parking lot over here, and was impressed by the classy and sporty look...

[Gregster]

Has M-B gotten over their quality control problems?

It has got better but still there are some faults. They seem to start having ills at the 75 000km mark

I am still shocked with the sport pack, for 800$ more you get a stupid amount of goods. I'd prefer the brushed aluminum trim though, My friend would take care of that for me.


17" multi-spoke alloy wheels
All-season performance tires
Sport suspension( OEM euro suspension)
AMG front and rear aprons
AMG side skirts
Mercedes-Benz Star in grille
Upgraded brake calipers
3-spoke sport steering wheel
Black Bird's Eye Maple wood trim
Aluminium studded pedals


http://img412.imageshack.us/img412/4777/benzep8.jpg (http://imageshack.us)
http://img412.imageshack.us/img412/benzep8.jpg/1/w994.png (http://g.imageshack.us/img412/benzep8.jpg/1/)

[dcaron999]

Carmaker hopes C-Class sedan appeals to frugal Canadians

Jil McIntosh (http://www.wheels.ca/columns/columnists/2682)
Special to the Star
Be the first to comment on this article... (http://www.wheels.ca/article/238863#Comments)

May 10, 2008
Mercedes-Benz, which performed a complete makeover of its C-Class for 2008, has unveiled its fresh new C230 to join the already released C300 and C350.
Not only is it new, but it's ours: the C230 is sold only in Canada. A rear-wheel-drive version starts at $35,800 with six-speed manual transmission, while my 4Matic all-wheel-drive tester, which comes only with a seven-speed automatic, starts at $39,500.
Special entry-level models usually do well with frugal Canadians, although it also might be that American buyers don't need as much of a price incentive: their C300, the next step up for us, starts at a mere $32,425 in practically-at-par U.S. dollars.
Once you swallow the price difference, the C230 stands on its own merits: this is an exceptionally nice automobile, offering the comfort and great driving experience of its siblings at a lower buy-in.
All of the C-Class models use V6 engines: while the C300 is a 3.0-litre and the C350 a 3.5-litre, the C230 breaks with the naming tradition, powered by a 2.5-litre V6 that makes 201 horsepower. One drawback is that it calls for premium fuel, which isn't a very pleasant surprise at the pumps these days.
It doesn't have as much power off the line as the other C-Class models – ask for acceleration at highway speeds, and you've got to wait for it to downshift before it takes off – but it's more than enough for city driving, and once it's up to speed, it's an exceptionally sweet highway performer.
The seven-speed transmission is well mated to the engine; a button switches it to Comfort, where it takes off in second gear for smoother starts or better traction on slippery roads, or to Sport, for snappier operation.
The 4Matic is a true all-wheel system, distributing torque 45 per cent and 55 per cent front to rear. It hugs curves tightly, cornering around them almost flat, and with nicely weighted steering that isn't appreciably heavier than the rear-wheel-drive versions.
The brakes bring it down from speed quickly and straight, and the whole package has a luxurious heft: this is the full Mercedes-Benz treatment, at a relatively reasonable price.
The 2008 redesign brings a new, AMG-inspired front-end treatment with massive three-pointed star, which Mercedes has introduced gradually: standard on the C350, it's part of a Sport package that's a no-charge option on the C300.
On the C230, the package is $800, which also includes 17-inch alloy wheels (up from the base 16-inch), performance all-season tires, sport suspension, side skirts, upgraded brake calipers, sport wheel and aluminum pedals. If you don't order it, you get the traditional unadorned three-bar grille with upright hood ornament.
A $2,200 Premium Package on the C230 also adds items that are standard on the other two models: heated seats, sunroof and auto-dimming, power-folding mirrors.
Inside are very comfortable "man-made leather" eight-way power seats, excellent dash fit and finish, and a handsome instrument cluster. The speedo needle floats around the outside of the speedometer, with the vehicle information centre in the middle. Press a button to open the cover that hides the stereo display, and it automatically turns it on – an upgraded music system with satellite radio is available, but not the navigation system that's optional on other models.
Other standard items on the C230 include dual-zone automatic climate control and automatic headlamps. At night, all controls are backlit, along with soft lighting in the footwells and door handles; a nice touch is that if you turn the stereo off, all of its backlit controls turn off as well, making the centre stack look much sleeker.
It's all very well done, save for the plastic on the heater control dials and shifter knob, which feels thin and cheap.
The standard windshield wipers are rain sensing, which I also don't like. As with similar systems from virtually every manufacturer, they're not sure how to handle drizzly weather. I wish automakers would just put variable intermittent wipers on everything: if you're smart enough to drive, you should be smart enough to figure out that it's raining.
Rear-seat legroom is generous, given the car's size, and the trunk is a spacious 104 cm in length; a folding rear seat was an option.
Everything's relative, of course, and the essential question with any vehicle isn't just what it costs, but whether it's worth the price. With premium brands, I find many can be overpriced by virtue of their name or their luxury touches. With the C230, the performance, handling and interior creature comforts live up to the sticker on the windshield.
If I found myself in the market for a car of this category, there's no question I would seriously consider buying it. The C-Class really is that nice.
Freelance auto reviewer Jil McIntosh can be reached at jil@ca.inter.net
Toronto Star

[hudonjea]

17" multi-spoke alloy wheels
All-season performance tires
Sport suspension( OEM euro suspension)
AMG front and rear aprons
AMG side skirts
Mercedes-Benz Star in grille
Upgraded brake calipers
3-spoke sport steering wheel
Black Bird's Eye Maple wood trim
Aluminium studded pedals




Sport package ?????

[blacksheep]

black maple probably looks all right

when we shopped out A4 we were hesitating between the turbo 4 and the V-6 ... the salesman says : ok here we have 2 cars exactly like you want, sport pack and premium pack ... one with a V-6 and one with the turbo 4

my GF opens the door of the V-6 then immediately slams it shut and says "it'll be the 4 cylinder!" ... the salesman and I look at each other with puzzled looks then ask her how come she made up her mind so quickly? She opens the door and points to the brown wood trim in the V-6 ... "deal breaker" ... hahahaha

[bmwqc]

Your GF made the right choice. A wood trim (i.e. a REAL wood trim), only fits in with certain cars (like the one with the Spirit of Ecstasy on the hood).




black maple probably looks all right

when we shopped out A4 we were hesitating between the turbo 4 and the V-6 ... the salesman says : ok here we have 2 cars exactly like you want, sport pack and premium pack ... one with a V-6 and one with the turbo 4

my GF opens the door of the V-6 then immediately slams it shut and says "it'll be the 4 cylinder!" ... the salesman and I look at each other with puzzled looks then ask her how come she made up her mind so quickly? She opens the door and points to the brown wood trim in the V-6 ... "deal breaker" ... hahahaha

[Gregster]

I wonder what people were thinking when the bought a tan interior with light or dark maple wood trim. The only reason why wood is still used in cars is because of the ye olde coachwork days.