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  #1  
Old 05-14-2020, 08:49 PM
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Jon Shafer Jon Shafer is offline
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One Small COVID-19 Victory

I should preface what I am about to say with an acknowledgement of gratitude. COVID-19 has harmed or even taken so many lives away that the gravity of lost sales absolutely pales in comparison. Nobody in my immediate family or close circle of friends and loved ones has suffered any permanent loss or injury other than economic (thank God). I live in the world of BMW retailing, highline European import luxury cars are just that (a luxury that only a few privileged can actually afford), and the loss of a few car deals are nothing compared with what other people have suffered through over the past 90 days.

Back in the late 1980s I lived through the "Black Monday" stock market crash. Over the following days/weeks/months it seemed like things would never be the same, but eventually things turned around and got better again. In the early 1990s, we had the Savings & Loan scandal, and Persian Gulf War I. Both of these events hit the car business hard, but we rebounded due to mostly to sheer perseverance and resolve.

On 9/11/2001 the twin WTC towers fell, and later in 2002 the BMW transport ship 'Tricolor' sank, taking with it many "Sold Order" BMWs. I remember having to make the call to few buyers to let them know their new E39s were resting on the bottom of the ocean. It was memorable only because of heartache, dreams dashed, but ultimately vehicle orders replaced.

In the later 2000s we had the Great Recession. Sales screeched to a halt, a trickle at best for a year. Only with the help of low-interest rate loans, "Cars for Clunkers" programs, etc., did any semblance of normalcy resume. By 2011 business began to boom again and continued to grow steadily, well, until now, the present Coronavirus Pandemic Crisis.

Today, May 14th 2020 is going to go down in the anals (sic) of my auto-sales career alongside the aforementioned.

Until yesterday, things were beginning to look up. Factories re-opening, BMW shipping cars to dealers again, and with the announcement of the "Sunset" of BMW European Delivery, I was on a roll. I had made a half-dozen or so fresh deals over the last week, and then today happened.

Now, we all knew that shutting down all of production was going to really screw up our supply. We expected that some orders would get lost (cancelled/deleted), and that it would take a while before things normalized.

I never in my wildest dreams expected to see what happened today...


.
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  #2  
Old 05-14-2020, 09:06 PM
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So... What happened today that was so awful you might be wondering???

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Old 05-14-2020, 09:17 PM
BMW_F1 BMW_F1 is offline
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Come on, spill the beans. Don't leave us with that much build up and just a cliff hanger...
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Old 05-14-2020, 09:37 PM
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Originally Posted by BMW_F1 View Post
Come on, spill the beans. Don't leave us with that much build up and just a cliff hanger...

Imagine printing your "DAR" (Daily Availability Report), the one that shows your entire vehicle supply pipeline....from cars on the ground in-stock, to cars at the VDC, cars on the water, cars awaiting shipment in Bremerhaven (or Greer), cars in production, cars scheduled for production, cars on order, and cars in the factory order bank.

The one that lists VINS, production numbers, customer names, etc. My daily news briefing.

Imagine running this report that had been 12 pages long and finding it to be now just 7 pages long. The majority of cars "on order" (111 & 112 status), are just plain GONE! Poof! Bam!! GONE!!!

This includes all of the last-minute European Delivery M2 & M5 orders you just spent the last week making as well as cars like the active Bimmerfest Forum Member's 230i that had been on order since March. GONE. G-O-N-E gone...

An order I had just filled yesterday on a 2021 X3M. Poof! Gone. Deleted. Buh bye...





I took the afternoon off and am attempting to numb my brain before I have to start making calls and explaining to buyers who have been patiently waiting for their new "Ultimate Driving Machines" for in some cases months.


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Old 05-14-2020, 09:40 PM
namelessman namelessman is online now
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To Jon, best of wishes from a man with no name, hopefully things will work out in your plus your customer's favor!
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  #6  
Old 05-14-2020, 09:42 PM
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To Jon, best of wishes from a man with no name, hopefully things will work out in your plus your customer's favor!
Thanks, I really appreciate it, but honestly, in most of the cases I don't how I am going to be able to solve an apparently unsolvable problem.

That, and now I effectively have little or nothing left at all to sell moving forward until the world's supply of BMW resets itself.

We will get a fresh allocation this week, but I doubt it will come close to replacing what is lost.
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Old 05-14-2020, 10:30 PM
BMW_F1 BMW_F1 is offline
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Originally Posted by Jon Shafer View Post
Thanks, I really appreciate it, but honestly, in most of the cases I don't how I am going to be able to solve an apparently unsolvable problem.

That, and now I effectively have little or nothing left at all to sell moving forward until the world's supply of BMW resets itself.

We will get a fresh allocation this week, but I doubt it will come close to replacing what is lost.
Yikes. I wonder even if factories are starting to come back online if they are running at the same capacity? Probably with the needed social distancing things will need to run at slower throughput, reducing the number of allocations, which resulted in all the cancelations you saw. Total speculation on my part though...

Not BMW, but VW in Germany is only running at 40% of regular output:

https://www.reuters.com/article/us-h...-idUSKCN2290J2
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Old 05-15-2020, 01:13 AM
Autoputzer Autoputzer is online now
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Hopefully, it's just a computer glitch. BMWUSA.com was acting up for a while. The GM parts website database is whacked now, too. . or they've run out of parts for 2007 Cobalt's.

Although, I could see production at the end of a platform's run (e.g. M2's) being cancelled altogether, since they have to retool for the next platform, and suppliers are retooling for the next platform, too.

I had to wait 17 months for my E46 M3. Production was delayed, and delayed, and delayed because of problems with the S54.
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Old 05-15-2020, 04:06 AM
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Are the factories solely focused on playing catch-up at this point? Perhaps fulfilling previous orders (what would be the cutoff date?), then supplying China. After which the US and everyone else will be able again to get slots for MY21 vehicles?
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Old 05-15-2020, 05:15 AM
Alpine300ZHP Alpine300ZHP is offline
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Sorry Jon. Better days lie ahead.


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  #11  
Old 05-15-2020, 06:07 AM
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So perhaps the rumor I saw on another post that claimed a dealership told a customer that their order was cancelled because it was not already in production is true? Do we have any idea what the cut off date was? My M340i is supposedly SOMEWHERE in the assembly run....but My BMW Garage has not updated my actual status since I think 3/5. Then it just said entering the queue. The Genius and BMWNA phone lines confirm it started production, they just cannot tell where it stopped and what it's new estimated completion date is.

I have heard from several other folks (Mostly GM people) that this is an awful time to be anywhere in the car business.
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Old 05-15-2020, 06:11 AM
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Yikes...I'm sorry to hear this. I guess I am lucky I didn't place an order yet. Hopefully this all works out and we can still place orders in the coming weeks.
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  #13  
Old 05-15-2020, 07:08 AM
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Quote:
Originally Posted by MG20i View Post
So perhaps the rumor I saw on another post that claimed a dealership told a customer that their order was cancelled because it was not already in production is true? Do we have any idea what the cut off date was? My M340i is supposedly SOMEWHERE in the assembly run....but My BMW Garage has not updated my actual status since I think 3/5. Then it just said entering the queue. The Genius and BMWNA phone lines confirm it started production, they just cannot tell where it stopped and what it's new estimated completion date is.

I have heard from several other folks (Mostly GM people) that this is an awful time to be anywhere in the car business.
Which number are you calling at BMWNA? My M340i was started on 3/12 w/ a scheduled finish date of 3/24. However, the factory closed 3/18 so I know it stopped mid-build. The MyBMW site just had "Production Begins" but is now showing "Exterior Body Assembly Begins". The last rep I talked to at the BMWNA phone number said it is scheduled to be finished 5/26.
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'19 MB GLS450
'07 4Runner V8 Limited 4WD

Gone: '17 340i 6mt, MPPSK, PCD 2/17, '16 GLE350, '06 LR3 HSE, '14 320i 6MT ZSP ZPP PCD 5/14, '12 ML350 diesel, '11 Accord 5mt, '10 MDX, '08 Accord 5mt, '06 Xterra 6mt, '98 528i, '95 Mazda Millenia
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Old 05-15-2020, 07:16 AM
rounderman rounderman is online now
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Good Luck Jon and all of you impacted. Stay safe, and hopefully this will pass sooner than we anticipate. This of us who drive theses cars must remember how lucky we are. 1968BMW2800 has mentioned several times how fortunate we all are to be worrying about our next BMW. Much tougher for those on the business side. You can't sell what you don't have. Jon I really hope you and your colleagues get through this. Thanks for starting and keeping this community going. I still feel like a newcomer, but really appreciate the wisdom out there

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  #15  
Old 05-15-2020, 07:19 AM
MG20i MG20i is offline
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Originally Posted by Shon528 View Post
Which number are you calling at BMWNA? My M340i was started on 3/12 w/ a scheduled finish date of 3/24. However, the factory closed 3/18 so I know it stopped mid-build. The MyBMW site just had "Production Begins" but is now showing "Exterior Body Assembly Begins". The last rep I talked to at the BMWNA phone number said it is scheduled to be finished 5/26.
800-831-1117 for BMWNA
844-443-6487 for Genius

I checked MyBMW garage this morning and still at Production Begins 'in the queue'.
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Old 05-15-2020, 07:23 AM
1968BMW2800 1968BMW2800 is offline
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Feelin' for ya,Jon. And for the customers who had ordered cars "in the pipeline."

Just like the lease return debacle, it seems BMW needs to stumble prior to regaining footing.

Take a long view of things. This too shall pass.
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  #17  
Old 05-15-2020, 07:57 AM
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If an order was already in "150 status" it is most likely safe.

For sure, any order that was not in "Priority 1" (SOLD ORDER) by April 30th, your order has been DELETED..

If anyone has a question about their order, CALL YOUR DEALER (not BMWNA).

All BMWNA employees are still working from home and they are overwhelmed.
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  #18  
Old 05-15-2020, 08:29 AM
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The one possible saving grace is that what out BMW Factory rep (Market Manager) sent in an email this morning, that he has a list of all P1 orders that were deleted, and he will be working with distribution to find replacements where possible.

What does this mean? In some cases, a customer just might get a MY 2021 instead of a 2020. The wait clock will be reset no matter what. And as for the lost European Delivery M Model orders, oy, I just pray BMW gives us extra allocation..

I want to say that none of this is the fault of BMW of North America, but rather an artifact of COVID-19. BMWNA has continued to fight the good fight with every available resource.

Fight on!
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Old 05-15-2020, 08:35 AM
bottlecap bottlecap is offline
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Is this a China deal? Are they routing everything to China?
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Old 05-15-2020, 09:01 AM
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Ibiza Ibiza is offline
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Quote:
Originally Posted by MG20i View Post
So perhaps the rumor I saw on another post that claimed a dealership told a customer that their order was cancelled because it was not already in production is true? Do we have any idea what the cut off date was? My M340i is supposedly SOMEWHERE in the assembly run....but My BMW Garage has not updated my actual status since I think 3/5. Then it just said entering the queue. The Genius and BMWNA phone lines confirm it started production, they just cannot tell where it stopped and what it's new estimated completion date is.

I have heard from several other folks (Mostly GM people) that this is an awful time to be anywhere in the car business.
That was me as my sales manager e-mailed me the BMW NA bulletin from May 13, 2020, attached is the bulletin.
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2020 F83 ZCP- Cancelled by BMW NA
2018 F85 PCD 1/18
2018 F83 ZCP- ED 9/17- PCD 12/17
2015 X5 50i M PCD 10/14-Rtd
2015 435 Cabrio M ED 9/14-Rtd
2011 X3 35i M PCD 6/11- Rtd
2011 335is Cabrio ED 9/2010-PCD 12/10-Rtd
2007 X3is PCD 1/07-Rtd
2007 335i Cabrio PCD 6/07-Rtd
2004 328i Cabrio PCD 3/04-Rtd
BMW Driving Experience Tracks:
Arjeplog Ice Training 2019
Nordschleife 2012 & 2018
Intensive Training for Professional Drivers 2017
Hockenheimring 2014
Advanced M VIR 2011
BMWCCA
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Old 05-15-2020, 09:05 AM
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Ibiza Ibiza is offline
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Quote:
Originally Posted by Jon Shafer View Post
The one possible saving grace is that what out BMW Factory rep (Market Manager) sent in an email this morning, that he has a list of all P1 orders that were deleted, and he will be working with distribution to find replacements where possible.

What does this mean? In some cases, a customer just might get a MY 2021 instead of a 2020. The wait clock will be reset no matter what. And as for the lost European Delivery M Model orders, oy, I just pray BMW gives us extra allocation..

I want to say that none of this is the fault of BMW of North America, but rather an artifact of COVID-19. BMWNA has continued to fight the good fight with every available resource.

Fight on!
I have the personal BMW NA e-mail address for my market manager, as once my status 111 F83 ZCP is cancelled, I will e-mail him and request to have a 1st available priority allocation for a G83 competition for 2021.

Thats awful all of the P1 deleted orders, especially the "sun set" ED orders. Hopefully, BMW NA reconsiders the ED program in light of the P1 ED orders being deleted.

EDIT: My P1 order has been cancelled, e-mailing my market manager now and cc'ing my sales manager. Should be interesting the MM response.
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2020 F83 ZCP- Cancelled by BMW NA
2018 F85 PCD 1/18
2018 F83 ZCP- ED 9/17- PCD 12/17
2015 X5 50i M PCD 10/14-Rtd
2015 435 Cabrio M ED 9/14-Rtd
2011 X3 35i M PCD 6/11- Rtd
2011 335is Cabrio ED 9/2010-PCD 12/10-Rtd
2007 X3is PCD 1/07-Rtd
2007 335i Cabrio PCD 6/07-Rtd
2004 328i Cabrio PCD 3/04-Rtd
BMW Driving Experience Tracks:
Arjeplog Ice Training 2019
Nordschleife 2012 & 2018
Intensive Training for Professional Drivers 2017
Hockenheimring 2014
Advanced M VIR 2011
BMWCCA

Last edited by Ibiza; 05-15-2020 at 09:23 AM.
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Old 05-15-2020, 09:10 AM
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Originally Posted by MG20i View Post
I checked MyBMW garage this morning and still at Production Begins 'in the queue'.
Not here, my 2020 M4 convertible has been purged from MyBMW garage. Oh well, I'll just wait for the G83. Next thing is to wait for the MY 2021 F95 order guide, hopefully production will normalize when I place my F95 order.
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2020 F83 ZCP- Cancelled by BMW NA
2018 F85 PCD 1/18
2018 F83 ZCP- ED 9/17- PCD 12/17
2015 X5 50i M PCD 10/14-Rtd
2015 435 Cabrio M ED 9/14-Rtd
2011 X3 35i M PCD 6/11- Rtd
2011 335is Cabrio ED 9/2010-PCD 12/10-Rtd
2007 X3is PCD 1/07-Rtd
2007 335i Cabrio PCD 6/07-Rtd
2004 328i Cabrio PCD 3/04-Rtd
BMW Driving Experience Tracks:
Arjeplog Ice Training 2019
Nordschleife 2012 & 2018
Intensive Training for Professional Drivers 2017
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Old 05-15-2020, 09:34 AM
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Originally Posted by MG20i View Post
800-831-1117 for BMWNA
844-443-6487 for Genius

I checked MyBMW garage this morning and still at Production Begins 'in the queue'.
I was using the 1-800-831-1117 number.
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'19 MB GLS450
'07 4Runner V8 Limited 4WD

Gone: '17 340i 6mt, MPPSK, PCD 2/17, '16 GLE350, '06 LR3 HSE, '14 320i 6MT ZSP ZPP PCD 5/14, '12 ML350 diesel, '11 Accord 5mt, '10 MDX, '08 Accord 5mt, '06 Xterra 6mt, '98 528i, '95 Mazda Millenia
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Old 05-15-2020, 10:54 AM
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quackbury quackbury is offline
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In a macro sense, this is not all bad. You're going to see a lot of folks who had ordered expensive models downgrading because of changes in their business. (I may be one of them). Buyers are no longer going to expect you to run a locate over an entire region; a center with a nice build is going to want to hang onto it anyway. You'll find an ass for every seat on the lot, regardless of colors or options. Folks who can't get the EXACT car they wanted will compromise, maybe with a CPO. Which will help use up the inventory at the auctions, in turn propping up the resale value of all BMW's.

What BMWNA / BMWFS should do is institute a leasing program for CPO's. A lot of serial leasers would take a 2 year CPO lease to tide them over till the factory is up and running. In some cases, this will allow them to get an LCI G30, or an M440i. This is a good thing. You're enough of a sales pro that you will be fine. It will weed out some of the dead wood in every center's sales department, but that's okay.

If I was in the business, I'd start getting really, really chummy with my Pre-Owned and Lease Return Managers, so I could get first dibs on the tasty returns. We all have confidence in you, Jon. And we will support you however we can.

The BMWNA empolyees who will really take it in the shorts are the folks at the VPC's and the Performance Center. I feel badly for them when the pipeline runs dry...
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Old 05-15-2020, 11:36 AM
1968BMW2800 1968BMW2800 is offline
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Originally Posted by quackbury View Post
In a macro sense, this is not all bad.

What BMWNA / BMWFS should do is institute a leasing program for CPO's. A lot of serial leasers would take a 2 year CPO lease to tide them over till the factory is up and running. In some cases, this will allow them to get an LCI G30, or an M440i. This is a good thing...
+++

24 month CPO lease for returning leasees. Lease fee waived (or at least halved from new car lease fee). Reasonable residuals. Extend warranty coverage for entire lease term for, say, 10,000 miles/year beyond original warranty.

2 years later, back we come, sniffing around for some New Car Smell, feeling well-loved by BMWNA.
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