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Old 11th December 2000, 00:28   #1
MAH
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Good News & Bad News-MY2001

All,

I was visiting my BMW dealer on Saturday and he mentioned that BMW was going to cut production of the M5 by approximatly 11% for the MY2001. He was not sure why, but did indicate that his allocation so far this year is about half of the previous year.

Of course, if you allready have a M5 this is great. If you have not yet ordered or are waiting for allocation it is not good news. This should keep the resale value at very high levels though.

BTW, the Southern California dealer was Crevier of Santa Ana and they had a black on black 2001 on the floor with a price of $79,500 with every option. Oh I forgot, it also had a dealer markup of $20,000 and you do not have to pay the luxury tax! So for $99,500 you could have one right away.

Has anyone else heard about a production cut for MY2001? If so, I wonder why?

Mark
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Old 11th December 2000, 04:41   #2
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MAH
My dealer here in East Tennessee told me that according to their regional rep, production would be up some, and allocations a little better. Hope my dealer's right since I'm on the waiting list for an '01!
MHICKS


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Old 11th December 2000, 16:19   #3
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I think the dealer who said production was down was doing a number on your head. I've heard that it will be up. There's no reason why they'd lower it. I think they've fixed a number of glitches through the '00 MY and into the '01 (like engine oil burning and VANOS noise problems), so we should see more rather than less.

Reminds me of an old joke. How can you tell if a car salesman is lying? A: His lips are moving.

[This message has been edited by StupidGrin8UP (edited 11 December 2000).]
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Old 11th December 2000, 16:28   #4
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Quote:
Originally posted by MHICKS:
MHICKS,

I hope you are right, but the dealer I was talking with had just returned from a trip to BMW's Corporate offices here in the US. You have to wonder why BMW would cut production with such a popular model. Perhaps the demand for the regular 5 series is pulling production time from the M. I am not sure how production is handled between the two production lines. Does anyone know if the production lines are one in the same for the two cars?

Thanks,

Mark

MAH
My dealer here in East Tennessee told me that according to their regional rep, production would be up some, and allocations a little better. Hope my dealer's right since I'm on the waiting list for an '01!
MHICKS

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Old 12th December 2000, 17:38   #5
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Quote:
Originally posted by MAH:
Does anyone know if the production lines are one in the same for the two cars?
MAH,
Yes and no. Final assembly is the same production line (which includes body fabrication). However there are significant sub-assemblies which come from other lines (e.g. the ENGINE ). Think of it as many paths leading to Dingolfing, some supplying regular 5s and others supplying M5s. So, things like shortages of ///M engines will affect the build plans for M5s.

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Old 12th December 2000, 18:19   #6
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While in Dingolfing meeting with BMW's PR Group last month, I was told that the main restricting factor was engine availability. Production is limited to about 100 engines per week, on a 48 week yearly schedule. This number must be divided between the M5 and Z8, and with the approved increase in production numbers of the Z8, there will be a corresponding decrease of M5s.
Francois
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Old 12th December 2000, 23:38   #7
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StupidGrin8UP & francois,

Thanks for the feedback. Interesting that the engine production could not be increased to meet demand. Do you think this situation is real or one created to keep the "value" high?

Mark
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Old 13th December 2000, 00:22   #8
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I heard the same thing that Francois has said. According to the dealer where I on the waiting list, the production of Z8's has been bumped up, meaning that there will be less M5's produced.
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Old 13th December 2000, 05:29   #9
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They are definitely making more money on Z8!

Makes logical sence...

Just another reason to take a good care of my beast.

07/00 Silverstone/Sportive
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Old 13th December 2000, 05:48   #10
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I think the whole story about M5 supply was made up by dealers, who see people canceling thier orders because the of the downturn in the stock market, and demand for the M5 is softening... Just a thought..
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