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02-02-2009, 09:24 AM
Dave Guilford
Automotive News
February 2, 2009 - 12:01 am ET
NEW ORLEANS — BMW of North America faces a tough situation in 2009: an expected 140,000 leased vehicles returning in a year when credit looks tight.
BMW's solution is to expand its successful certified used-vehicle program. After the make meeting, Robert Day, owner of BMW Concord in Concord, Calif., said the goal will be to get as many off-lease vehicles as possible into the certified program.
"Is it going to be through the BMW network or through independents?" asked Day, chairman of the BMW Dealer Forum.
BMW sold a record 104,000 certified used vehicles in 2008 and wants to sell 120,000 this year, said Jim O'Donnell, CEO of BMW of North America.
Art Allen, general manager of BMW of Corpus Christi (Texas), said BMW's message to dealers at the meeting was to take the off-lease vehicles into their certified program.
"It seems as if there's a few too many of them going through the auction channel, and that's not good for anyone," Allen said.
In an interview after the make meeting, O'Donnell said the certified program is "a very good route" for dealing with off-lease vehicles.
Keeping the vehicles in the certified program helps residuals and provides dealer revenues. It also offers vehicles for buyers who are coming off subvented leases and are unable to afford a new BMW at today's lease rates.
BMW is taking several other steps to bolster dealer revenues. This month the brand will open additional parts centers in the Chicago area and eastern Pennsylvania and will cut parts prices. BMW wants to retain service customers beyond its 4-year/50,000-mile free maintenance program.
BMW also will relax requirements for U.S. dealership staffing and service training, which exceeded European practices, he said.
BMW's major launch this year will be the flagship 7 series, due in late March, along with the X6 hybrid crossovers and two diesels, the 335d car and X5d crossover.
But O'Donnell added: "We need to get more and more into used cars."
.
Automotive News
February 2, 2009 - 12:01 am ET
NEW ORLEANS — BMW of North America faces a tough situation in 2009: an expected 140,000 leased vehicles returning in a year when credit looks tight.
BMW's solution is to expand its successful certified used-vehicle program. After the make meeting, Robert Day, owner of BMW Concord in Concord, Calif., said the goal will be to get as many off-lease vehicles as possible into the certified program.
"Is it going to be through the BMW network or through independents?" asked Day, chairman of the BMW Dealer Forum.
BMW sold a record 104,000 certified used vehicles in 2008 and wants to sell 120,000 this year, said Jim O'Donnell, CEO of BMW of North America.
Art Allen, general manager of BMW of Corpus Christi (Texas), said BMW's message to dealers at the meeting was to take the off-lease vehicles into their certified program.
"It seems as if there's a few too many of them going through the auction channel, and that's not good for anyone," Allen said.
In an interview after the make meeting, O'Donnell said the certified program is "a very good route" for dealing with off-lease vehicles.
Keeping the vehicles in the certified program helps residuals and provides dealer revenues. It also offers vehicles for buyers who are coming off subvented leases and are unable to afford a new BMW at today's lease rates.
BMW is taking several other steps to bolster dealer revenues. This month the brand will open additional parts centers in the Chicago area and eastern Pennsylvania and will cut parts prices. BMW wants to retain service customers beyond its 4-year/50,000-mile free maintenance program.
BMW also will relax requirements for U.S. dealership staffing and service training, which exceeded European practices, he said.
BMW's major launch this year will be the flagship 7 series, due in late March, along with the X6 hybrid crossovers and two diesels, the 335d car and X5d crossover.
But O'Donnell added: "We need to get more and more into used cars."
.
