BMW and Mercedes will go out of their way not to lower prices after the supply crisis is over

BMW AG and Daimler AG (which owns the Mercedes-Benz brand) will limit the volume of shipments of their cars after the end of the crisis with the production of semiconductor chips. In this way, they intend to maintain prices for products at elevated levels, which have been achieved since the beginning of the year due to disruptions in production, according to the British newspaper Financial Times.


During the crisis, BMW and Mercedes-Benz made sure that customers are willing to pay more for their cars. Both manufacturers' recommended retail prices and dealer markups are now rising in all global markets.


"We will become consciously insufficient to meet demand," said Daimler AG Chief Financial Officer Harald Wilhelm. He added that at the same time the concern "will make the transition to a higher, luxury segment.


BMW is going to pursue a similar policy. Financial Director of the Bavarian group Nicolas Peter admitted that the company "recorded a significant improvement in pricing abilities over the past 24 months". As such, the company intends to maintain its approach to supply assurance.


"Customers are willing to wait three to four months, and that helps our pricing ability. Of course, the wait time shouldn't be very long, but if you're buying a premium car like a BMW, it's an emotional decision. And I'm sure that a short wait leaves buyers with an even more vivid and powerful impression," commented Peter.


The Financial Times writes that Daimler AG's sales revenues increased from 8.4% to 12.2% in the last reporting period, compared to 2018. At BMW, they rose from 8.6% to 16%.


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