BMW cuts $4000 from all models

BMW Australia has announced an unprecedented move to slash $4000 from the price of every model in its line-up.

Roughly equivalent to the on-road statutory and dealer deliver fees charged for some models, the range-wide $4000 discount comes in the form of an ‘EfficientDynamics Credit’.

Available at participating BMW dealerships for new models ordered and delivered before November 30, BMW says the $4000 credit initiative is based on the successful scrappage schemes recently on offer in Europe and the US, where government subsidies have encouraged buyers to switch to more fuel-efficient new models.

According to BMW, until the end of next month the price of its most affordable model, the 118i hatchback, will be reduced from $38,900 to $34,900 with the credit. At the other end of the BMW scale, the flagship 730d diesel sedan’s price will reduce from $198,800 to $194,800.

While its share of Australia’s premium vehicle sales segments is up, BMW’s overall sales are down. The company hopes the $4000 credit system will maximise the effect of the federal government’s 50 per cent business capital expenditure allowance, which expires on December 31.

“At BMW, we believe in giving credit where credit is due,” said BMW Group Australia managing director Stavros Yallouridis. “The BMW EfficientDynamics Credit is designed to reward drivers who choose a vehicle from Europe’s most efficient premium fleet.

“It builds on similar ideas from overseas fleet renewal schemes and is designed to generate customer awareness of the benefits of BMW EfficientDynamics,” he said.

Meantime, BMW has also announced a “periodic review” of its creative advertising agency contract, which is now up for renewal following a directive from Germany.

The creative agencies employed by BMW locally are Badjar Ogilvy (lead), VI (digital and CRM) and Wagner Business Development (retail), but BMW Group Australia’s general manager of marketing Tom Noble said a shortlist would be finalised by early November before new agencies were announced in early 2010.

“As part of international protocol, we are required to review all our agency partnerships every five years,” said Mr Noble. “We also underwent this process two years ago with our media buying partner Mitchell’s Media.

“Our current agencies have done an outstanding job for us and all have a relationship with BMW Group Australia in excess of 10 years, so this is absolutely no reflection on their performance.

“As such we will be conducting this as a closed pitch with a selection of agencies that we believe could potentially meet our needs.”