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High End Luxury Cars

24723 messages,  Last post on Jan 28, 2013 at 6:55 PM

You are in the Sedans Forum.

What is this discussion about? Audi A8, BMW 7 Series, Jaguar XJ-Series, Lexus LS 460, Mercedes-Benz S-Class, Volkswagen Phaeton, Maserati Quattroporte, Mercedes-Benz CL-Class, Sedan



Let's try to define this forum as being limited to luxury performance vehicles where the mainstream version in a typical configuration has an MSRP of at least $60k.

A luxury vehicle with a base price of $59k qualifies because it would typically be bought with some additional equipment, bringing the MSRP over $60k.

Vehicles like the E, 5, A6, M, or GS, even if available in certain versions over $60k, don't qualify because they are cars from companies that have higher end cars in their lineups.

Messages Page 1179 of 2473

#11775 of 24723 Latest figures: BMW ROCKS HARD. by tagman

Dec 07, 2005 (9:48 pm)

Put any spin you like on this:
 
FRANKFURT, Dec 7 (Reuters) - German premium carmaker BMW (BMWG.DE: Quote, Profile, Research) widened its lead over arch-rival Mercedes Car Group in November as sales grew by 9.5 percent, fuelled by brisk demand for its BMW 3-Series saloon, data showed on Wednesday.
 
Sales of 114,044 cars last month put year-to-date deliveries above BMW's level for all of 2004 and reinforced its bragging rights over DaimlerChrysler's (DCXGn.DE: Quote, Profile, Research) premium division.
 
"We can already predict that we will be the most successful supplier in the premium segment worldwide for 2005 as a whole," said BMW sales and marketing chief Michael Ganal. "We are growing more quickly than our relevant competitors."
 
Deliveries of its core BMW-brand cars rose by 10.4 percent to 98,788 vehicles last month compared to the same period last year, while sales of its Mini subcompact grew 3.7 percent to 15,171 cars. It delivered 85 Rolls-Royce Phantom luxury limousines, up 6.3 percent.
 
For the first 11 months, group sales rose 10.8 percent to 1,211,177 cars, keeping it well on track to hit its forecast for unit sales to grow at a high-single-digit rate in 2005.
 
Mercedes Car Group said on Tuesday that unit sales rose 1.2 percent in the first 11 months to 1,094,500 Mercedes-Benz and Smart brand cars. It did not break out a separate number for its luxury Mayback limousine brand.
 
BMW brand sales in the first 11 months totalled 1.02 million cars, leading Mercedes-Benz at 961,600. In the battle of urban chic minicars, Mini brand sales topped 190,000 while Daimler's snub-nosed Smart was just shy of 133,000 sales.
 
Sales at Audi (NSUG.DE: Quote, Profile, Research), the premium car arm of Volkswagen (VOWG.DE: Quote, Profile, Research), grew by 8.8 percent to nearly 767,000 unit sales in the first 11 months of the year.
 
Have F-U-N!
TagMan

#11776 of 24723 Re: Value of Free Maintenance [tagman] by garyh1

Dec 07, 2005 (9:49 pm)

Replying to: tagman (Dec 07, 2005 5:58 pm)
I believe DaimlerChrysler has referred to this issue in their quarterly earnings releases several times, but I can't quickly put my hands on them, and I really don't care to spend a lot of time looking for the sentence. Suffice to say, for example, when they recalled 1.3 million cars in April, it cost them some money.
 
Here is a quote from a JP Morgan research report dated 10/24/05 that references the issue ("provisions for product guarantees relating to earlier periods" - in finance lingo, that means setting aside even more money now to pay for greater than anticipated warranty repairs, which brings down current earnings):
 
"Mercedes Car Group
MCG posted a 3% increase in revenue, below our expectations, on unit sales up 6%, and a slightly positive currency impact, implying 3-4% mix deterioration consistent
with the replacement of the S Class, flat E class sales and higher sales of the A and B classes. The €436m profit contribution includes a €60m reversal of earlier legal
provisions, ie met consensus and missed JPM. Results were burdened to some extent by the return of provisions for product guarantees relating to earlier periods (€289m
at group level, note 14b page 29 of the release)..."
 
Hopefully that's enough proof for you. If not, perhaps someone else like ljfx can add some more references....
 
But re BMW, an extra oil change here or there or replacing some wiper blades isn't going to have any significant effect on current earnings. Since at least 2002, the expense of things like "free maintenance" is supposed to be reserved for when the car is sold (FASB Interpretation No. 45). Of course, car companies can and do play with these reserves a bit to smooth out earnings, but you can bet MB didn't budget for the recall of 1.3 million cars when they were sold!

#11777 of 24723 MORE BMW SUCCESS! by tagman

Dec 07, 2005 (10:01 pm)

Here's even more testimony.
 
The 2006 AUTOMOBILE MAGAZINE top industry honors were awarded to:
 
* Automobile of the Year: BMW 3-series--The latest version of BMW's superior sport sedan drove off with this year's top award. The 3-series is a testament to BMW's commitment to excellence and to the company's long-term thinking. BMW has produced a car that is the gold standard for its class, something that all other automakers feel they have to measure up to. A car that continues to get better and better with every evolution.
 
Anybody surprised?
TagMan

#11778 of 24723 Re: Latest figures: BMW ROCKS HARD. [tagman] by garyh1

Dec 07, 2005 (10:06 pm)

Replying to: tagman (Dec 07, 2005 9:48 pm)
Here's my "spin":
 
If the 3 series is leading the way for BMW, and the 3 is the car that is least Banglized (which virtually every reviewer has said) and doesn't have iDrive, imagine what BMW total sales would be if the 5 and 7 weren't as Banglized as they are, and didn't come with iDrive (or at least weren't suffering under the bad press the earlier generation iDrive received). Scary.

#11779 of 24723 Re: Value of Free Maintenance [garyh1] by ljflx

Dec 07, 2005 (10:13 pm)

Replying to: garyh1 (Dec 07, 2005 9:49 pm)
"Here is a quote from a JP Morgan research report dated 10/24/05 that references the issue ("provisions for product guarantees relating to earlier periods" - in finance lingo, that means setting aside even more money now to pay for greater than anticipated warranty repairs, which brings down current earnings)"
 
Therein lies the reasons they killed off free maintenance:
 
A - past expenses overwhelmed the accruals they set up so they had to go backward and up the ante for every (still) qualifying car sold since day 1 of the freebie
 
B - The auditors could probably be called on the carpet that this resulted in an overstatement of revenue. So hence they would no longer treat future maintenance as an expense accrual but instead as a revenue reduction. Same P&L effect but you rather have it as an expense of course.
 
C - the warranty accrual on every car sold would require an upward adjustment and could also be viewed as a revenue reduction going forward if the problem is viewed as persistent in the past.
 
No wonder they are going for a price increase on the S. They want you to pay for their past mistakes and give you a bunch of marketing BS as window dressing.

#11780 of 24723 Re: Latest figures: BMW ROCKS HARD. [garyh1] by tagman

Dec 07, 2005 (10:14 pm)

Replying to: garyh1 (Dec 07, 2005 10:06 pm)
I'll give credit where credit is due. But, no matter how great a car is, I will never support designing the trunk after a picnic table.

#11781 of 24723 Re: True Luxury Cars. READ THIS!! by TagMan [ljflx] by merc1

Dec 07, 2005 (10:27 pm)

Replying to: ljflx (Dec 07, 2005 7:46 am)
In all honesty do you really think a young company that has blown past them (sales, quality, customer satisfaction, retained value, dealer service - and remember many who own Lexus dealers also own MB and other lux dealerships) in the largest and most profitable market in the world is not a key focus? Because if that's the case then they have managers who cannot see the future. That was certainly the case in 1990 and for the Germans sake I hope it isn't the same now.
 
Did you read my entire post? I clearly stated that Lexus is probably the focus of everyone when it comes to quality and reliability. The problem with you guys is that you would like to believe the BMW/Mercedes are up all hours of the night having emergency meetings about what to do about Lexus. That notion is just plain ridiculous. Sure they think about Lexus, but probably nearly as much as you'd like to think they do. In Europe, you know where these cars companies are headquartered, they still think about each other, MB/BMW/Audi than Lexus because Lexus isn't even a spec on the map, yet. I'm sure the brand managers here think about Lexus/Acura/Infiniti a lot because of the things you've mentioned - never denied that. What I disagree with is the bs about them being obsessed with Lexus. Also, no Lexus fan will ever admit that Lexus is nothing more than a wannabe synthetic brand with the biggest case of envy in the world. I mean how ridiculous is it to constantly advertise your cars as being German in commercials/brochures etc. to fool someone into think they're actually German cars? The Germans don't do this wannabe stuff, yet Lexus fans probably think Lexus doesn't think anything about MB or BMW right? If anyone thinks about someone all the time its Lexus. Mercedes for 15 years and now BMW.
 
M

#11782 of 24723 Re: scathing comment about MB E-brakes from AE [lexusguy] by merc1

Dec 07, 2005 (10:33 pm)

Replying to: lexusguy (Dec 07, 2005 1:47 pm)
Typical comments from him I guess. I'm aware they're dropping it. This is what they have to do in order to convince those who think the system is faulty in every car out there - forgetting the fact the problem only cropped up in a some high-mileage German taxicabs. Most people wouldn't even know anything about the brakes if weren't for something they read and then ran with - as is done often around here.
 
Lexus uses something similar and the complaints have been the same about feel, use etc.
 
As for the Autoextremiest, you should read what he said about Toyota and their preaching about hybrids, equally scathing - which I agree with.
 
M

#11783 of 24723 Re: Value of Free Maintenance [ljflx] by merc1

Dec 07, 2005 (10:39 pm)

Replying to: ljflx (Dec 07, 2005 10:13 pm)
No wonder they are going for a price increase on the S. They want you to pay for their past mistakes and give you a bunch of marketing BS as window dressing.
 
Does that fall under the same BS that Toyota gave about "helping GM"? Funny how only German car companies give "BS" according to those on this board.
 
Did it ever occur to you that the S-Class price increase could be because it is a better built car than before? Why is every single thing that Mercedes does is so wrong and/or bad for the consumer and just bs? Totally ridiculous.
 
M

#11784 of 24723 Re: True Luxury Cars. READ THIS!! by TagMan [merc1] by oac

Dec 07, 2005 (10:57 pm)

Replying to: merc1 (Dec 07, 2005 10:27 pm)
Also, no Lexus fan will ever admit that Lexus is nothing more than a wannabe synthetic brand with the biggest case of envy in the world.
 
Hmmm !! "Lexus is a wannabe synthetic brand...." This, I suppose is meant to get a rise out of Lex fans, eh ? Sorry.
 
I mean how ridiculous is it to constantly advertise your cars as being German in commercials/brochures etc. to fool someone into think they're actually German cars?
 
Lexus now mimicks German cars in ads? What is a German car ad like ? Is there something unique to them - makes them so German ??? Hmmmm !!! I suppose Lexus is designed like German cars, looks like German cars, can often be mistaken for a German car, and is named after a German car... Otherwise, its a German...err Japanese car !
 
The Germans don't do this wannabe stuff, yet Lexus fans probably think Lexus doesn't think anything about MB or BMW right? If anyone thinks about someone all the time its Lexus. Mercedes for 15 years and now BMW.
 
The Germans could do no wrong ! They don't do wannabe stuff like Lexus. Lexus thinks about MB all the time for the last 15 years....
 
Do you seriously believe all these stuff you wrote here, or were these written out of anger at Lex fans? Just to kinda get back at them ?

Messages Page 1179 of 2473

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