Quote:
Originally Posted by jstnstr
Ok here is my loose reasoning. Obviously no prices translate directly between markets because all markets have different currencies, taxes, standard vehicle equipment etc etc.
BMW Switzerland:
535i Automatic- 70,500 CHF
X4 35i XDrive- 68,800CHF
X5 35i - 71,400CHF
M2 Manual: 69,500CHF
BMW USA:
535i Automatic: $55,850
X4 35i XDrive: $49,700
X5 35i: $53,900
M2 Manual: probably north of $51k
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OK but this doesn't even attempt to take into account competition of each vehicle within market segments, which is really important. BMW won't price the car at a loss, but how much of a profit margin they will take can depend on where they think the price will be competitive in a given market within each country. If they don't sell enough because competition was fierce, then it wouldn't have been worth the few extra dollars they made on each sale. So, they have to anticipate that as well.