Is BMW finally feeling the effects of the European car crisis?

BMW sales are falling as they seem to be feeling the effects of the European car crisis, according to reports from Germany.

Germany is by far Europe’s largest car market. It is really no surprise considering that the likes of Volkswagen, Mercedes-Benz and Audi are German. It has been one of the only positives regions throughout the whole European car market. Somehow the German market has managed to increase sales and grow 0.7 per cent from January to June of this year. This statistic represents a stark contrast when comparing the rest of Europe. Sales in Italy fell by 20 per cent and sales in France fell by 14 per cent when comparing the same time period. Car sales are so bad at present that some experts predict that they will reach their lowest level since the year 1995.

Car makers are under intense pressure to cut the prices of cars. Some are being sold as zero mile cars with discounts of around 20 per cent.

It has come as somewhat of a surprise that BMW are feeling the pressure. Usually the target market for BMW is wealthy businessmen who simply ride the recession and are not affected. The new generation BMW 3 Series has been a top seller throughout the world. There has been a great deal of interest in the car but this hasn’t stopped dealers offering a great discount on the vehicle. Some customers have been quoting prices on brand new cars from abroad, forcing some BMW salesman to drop their prices.

Mercedes-Benz is also understandably in the same boat on occasion. Some dealers in Italy have lowered their prices following difficulty in sales.

BMW Sales are not making as much profit as expected. More and more customers want bargains with dealers having to lower the prices of new vehicles.

General Motors brands Vauxhall and Opel are continuing to make losses this year. Peugeot and Fiat are in the same boat. The luxury car market was expected to be the exception to loss making mass car producers. However it seems that luxury car makers have joined the struggle.

BMW car prices have fallen down to 1.5 per cent this year on average. Previously that figure was 0.5 per cent.

Will BMW sales recover and reach the heights of what they once did? It will be a difficult task considering the vulnerability of the European car market at the moment.