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Mandatory Nav on All May production orders

9K views 49 replies 26 participants last post by  jaybert 
#1 ·
FYI,
I saw the BMW memo...All orders for X3 28I, X3 35I, must have Nav ordered for production in May and after..............No end date was stated.
I got an April production number date. The thing was that the power lift gate is having supply delays and is Part of the convenience pkg. I had to delete the Conven. pkg or it would delay production into May...Therefore having to order Nav $2100.00 more.
I was lucky to get a production number at all. I had called alot of dealers . They have more sales than slots to build. After promoting the crap out of the X3 and not be able to keep up with the US demand.........Strange
 
#3 ·
Sounds more like they are telling their sales group to force add ons to boost profits.

Like buying a motorcycle and being pitched the $500 leather jacket to go with it.
 
#4 ·
The claim was that it was due to to crisis in Japan, and part shortages..........................Doesn't make much sense...
I think they have a supply shortage of X3's because they are making more money sending them to Europe..More bang for the Euro...
They are trying to boost profits after causing the shortage in the USA.
The Nav will be mandatory on all 5 series as well staring in May,
 
#6 ·
"Please be advised that due to the unfortunate incident in Japan, a shortage of supply of microchips has caused a mandatory option addition to several of our models until further notice."

Starting with May production, Option Code 609 (Navigation) or ZP2 (Premium Package 2) will be mandatory until further notice on the following models:
528i, 535i, 535xi

Starting with May production, Option Code 609 (Navigation) or ZTP (Technology Package) will be mandatory until further notice on the following models:

X3 xDrive28i, X3 xDrive35i"





Only explanation received.
 
#10 ·
That's what I thought. If microprocessors are in short supply, shouldn't tech options be limited rather than forced?

Still sounds fishy to me. I'm aware the automatic tailgate has supply issues but nothing with the sat nav. I mean, the iDrive screen is there as standard anyway in the US.
 
#13 ·
Added margin for the manufacturer.
Navigation is a very high margin option.
The parts shortage is going to have a ripple effect throughout the global auto industry for quite some time.
They will build less cars as a result. Might as well make more profit on each unit.
 
#14 ·
"I can't understand why the shortage would force you to have to get an option"

Why is it so hard for everyone to understand that BMW might have supply issues on the parts that are put in cars built WITHOUT navigation systems? If they only have a steady supply of screens and other parts for cars with the navigation system, that is why they are forcing the option until they get a better supply.
 
#15 ·
They have plenty of parts for both models.
BMW is in business to make money by selling cars.
The supply chain shortage has nothing to do with the nav system but might have something to do with paint pigments, engine control
System electronics etc.
As a result, they will need to cut production. Forced high margin option groups is simply a hedge against decreased production output.
 
#16 ·
they have plenty of parts for both models.
Bmw is in business to make money by selling cars.
The supply chain shortage has nothing to do with the nav system but might have something to do with paint pigments, engine control
system electronics etc.
As a result, they will need to cut production. Forced high margin option groups is simply a hedge against decreased production output.
+1
 
#18 ·
Most think I'm too cynical, but do you really think BMW would be playing that kind of game? I mean if with so many suppliers and paper trails - even if there was even a hint of manipulating the profit margin by offsetting loses due to delays related to the humanitarian disaster in Japan - there would be such a reputation backlash, not to mention legal backlash..

I don't know - if it's something that could never be proved and was always subjective decision, then.. but if they are writing memo's, leaving proof that they are switching options and stating the Japanese catastrophe is cause - it better be true I think...
 
#19 ·
It is not a game at all. It is business. No one is forcing anyone to buy an X3 or 5 series.
It is a simple economic supply and demand issue.
At some point in history, most manufacturers have done the same thing.
Back in the day when Honda had no sitting inventory and the customer took what came in, how many DX standard shift models do you think the factory produced? None. The factory was set on building higher margin LX and EX models.
It is called maximizing resources. BMW is not saying let's force product because of the situation in Japan, they are saying there IS a supplier issue, so let's maximize profits on the units that we can successfully build and deliver.
 
#21 ·
no disrespect, but he is referring to BMW's margin. And BMW's cost for this option is far, far below the invoice price for that option. Most options are a profit-center for BMW as there is no or minimal actual extra cost versus the default. The parts on a nav car probably cost them $100 or $200 more than the parts for a non-nav car.
 
#27 ·
When choice was a luxury...

I've owned two BMWs, a Mini, and an Audi at this point. The only consistent aspects were 1) Manual Transmission and 2) NO navigation system.
In fact, I custom ordered my 2006 BMW 330Cic in order to get that particular combination. Now the new X3 loses on both counts! I'll just have to hold onto my 2006 X3 that much longer... My current 2006 X3 has a 6-spd manual, m-sport package, premium, premium stereo, PDC, and xenons.
Maybe the new X1 will come with a manual transmission, otherwise I'm done with BMW and will move "down market". Choice used to be a luxury. Now "luxury" car makers are forcing specific options. Kind of defeats the purpose of paying >$45K on a car when you can't actually get what you want.

-James
Seattle, WA
2006 X3 3.0i
2006 Mini Cooper S convertible (sold)
2006 330Ci convertible (sold)
1998 Audi A4 Quattro (sold)
 
#28 ·
Iamwalrus. Why not consider a Countryman S? Fully loaded with EVERY option pkg with MT it comes in under $35k.

Sent from my DROIDX
 
#31 ·
I placed the order for our X3 (will be my wife's primary vehicle) on May 16th. As of checking it today, it's in 01. Start of Production on the "Track Your BMW" webpage through bmwusa. We only ordered the Cold Weather and Premium packages and that's what the webpage is showing is being built.

Maybe they've retracted from requiring the Navigation or maybe I'm assuming too much that being in "Start of Production" mean that it's being built?
 
#33 ·
I placed the order for our X3 (will be my wife's primary vehicle) on May 16th. As of checking it today, it's in 01. Start of Production on the "Track Your BMW" webpage through bmwusa. We only ordered the Cold Weather and Premium packages and that's what the webpage is showing is being built.

Maybe they've retracted from requiring the Navigation or maybe I'm assuming too much that being in "Start of Production" mean that it's being built?
Yup, "Start of production" is good news and it is being built as we speak.
It won't be long now before you're taking it for a spin.
 
#34 ·
BMW salesman just emailed me a memo from BMW Automotive sales titled "X3 Navigation Update". It is dated May 19, 2011. It says:

" Please be advised for the X3's we have developed a solution that will no longer
force Navigation (6090 on all orders. Alternatively,X3 orders will require BMW
Assist with enhanced Bluetooth and USB (6NL) which will be released as a
standalone option at acost of $650.
There will be no charge for 6NL when ordered in combination with Technology
Package (ZTP) or Navigation (609).
Currently in O-line ordering, Vehicle Inquiry this option is showing N/C. This
is not the case; tthere is a charge of $650 for this option which will appear to-
morrow.
 
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