Less, but more expensive: plans of BMW and Daimler for the sale of cars

Less, but more expensive: plans of BMW and Daimler for the sale of cars

FineAuto

Concern Daimler, which owns Mercedes-Benz, and BMW will limit the supply of cars even when the shortage of electronic components is a thing of the past. Thanks to this, they will be able to maintain the high prices for their products, which were established during the pandemic, according to the Financial Times. Demand exceeded supply, and customers were willing to pay more, even with delayed vehicles.

The global shortage of semiconductors due to lockdowns led to disruptions in the production of cars and, as a result, a forced change in the approach to their sale. Dealerships are short of expensive versions with “sophisticated” electronics, which means they are overpriced and shipped with delays of up to four months. It turned out that this does not scare customers, but brings significant benefits to manufacturers.

According to the financial director of Daimler, Harald Wilhelm, the concern is going to further restrict the supply of cars, even when the shortage of electronic components will become a thing of the past. At the same time, the concern will form an even more “luxury” image of the brands under its control.

BMW stands in solidarity with compatriots. The past two years have shown that supply chain management is opening up new pricing opportunities, said BMW CFO Nicholas Peter. In addition, waiting for the purchased car enhances the shopping experience – but it shouldn’t take too long, he added.

The abandonment of the usual 15% discount in the main markets has already led to an improvement in the financial performance of BMW and Daimler. Thus, in the second quarter of 2021, Mercedes-Benz increased its profitability to 12.2 percent. Over the same period in 2018, even before the diesel scandals and the pandemic, it was 8.4 percent. BMW has managed to raise margins from 8.6 percent to almost 16 percent.

According to experts, the shortage of electronic components may persist until 2023. However, the situation is gradually improving, and next year the shortage of semiconductors will have a less serious impact on production.

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