BMW to increase U.S. prices by 1 percent

Due to the weak dollar, BMW is planning to raise prices of some of its models by 1 percent. The increase will affect cars such as the X5 and the 5-Series starting June 1.

“It’s a moderate price increase that reflects the conditions in the market,” said Markus Sagemann, a spokesman for BMW.

The dollar has dropped about 8 percent against the euro meaning that for every 5-Series BMW sells, it gets 2,000 euros (about $3,150) less than it did in the beginning of the year.

BMW’s net income fell 17 in the first three months of 2008. For the first four-months of 2008, BMW sales fell 4 percent, or to about 100,000 cars. This is the first price increase from BMW since March 2007.

While it shouldn’t be that drastic of a jump, if you were considering getting a BMW, you better head to the dealerships before June 1st and save yourself some money.


Source: Bloomberg

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