Like last year, MINI USA will be increasing the prices across the model range for 2006. However, unlike last year (when all cars on the lot by 1.1.05 got the increase) this will only affect cars wholesaled on or after March 1st. Here are the details:
- MINI Cooper: + $500 ($17,450)
- MINI Cooper Convertible: + $500 ($21,950)
- MINI Cooper S Convertible: + $500 ($25,400)
- MINI Cooper S: + $300 ($20,900)
[ New base prices are in ( ) ]
Production affected by this price increase include February and potentially January and December (unless those cars are wholesaled before March 1st 2006). Unlike the 2005 increase, MINI USA isn’t altering pricing for any options.
MF Analysis:
The Pound vs Dollar battle strikes again. Expect more of these small price increases in the next few years due to a number of reasons (including fluctuating currecy values). And if there’s anyone in the US who feels that these prices have risen too high, I recommend checking out the base prices in the UK. That’s sure to put things in perspective.
Related:
[ MINI USA Price Increase for 1/05 ] MotoringFile
Well, there’s two ways now to make up for the currency problems-raise the price and tell everyone production will be cut back! Works every time!
Pete
i can’t let you, or BMW, get away with blaming Dollar weakness for the price increase anymore. the Dollar has been on a tear during the last 9 months and is only marginally down on a 2 year basis.
<a href="http://finance.yahoo.com/currency/convert?from=USD&to=GBP&amt=1&t=2y" rel="nofollow ugc">http://finance.yahoo.com/currency/convert?from=USD&to=GBP&amt=1&t=2y</a>
relative to the Euro the 2year performance is even more impressive
<a href="http://finance.yahoo.com/currency/convert?from=USD&to=EUR&amt=1&t=2y" rel="nofollow ugc">http://finance.yahoo.com/currency/convert?from=USD&to=EUR&amt=1&t=2y</a>
perhaps there’s lingering affects within their captial structure from the past several years, or their less able to hedge now, but i’d wager the increases have more to do with Supply/Demand than the Dollar.
however, the 5 year USDGBP rate looks like total crap.
<a href="http://finance.yahoo.com/currency/convert?from=USD&to=GBP&amt=1&t=5y" rel="nofollow ugc">http://finance.yahoo.com/currency/convert?from=USD&to=GBP&amt=1&t=5y</a>
<blockquote>i can’t let you, or BMW, get away with blaming Dollar weakness for the price increase anymore. the Dollar has been on a tear during the last 9 months and is only marginally down on a 2 year basis.</blockquote>
It would have to be on a tear for a little longer than 9 months before things get better for the EU automakers.
the british maybe, but MINI’s BMW and BMW’s EUR. they may be spending Pounds and getting Dollars but they’re both going back to Euro and the Dollar’s strengthend against both.
dollar euro’s pretty flat on a 5 yr basis.
<a href="http://finance.yahoo.com/currency/convert?from=USD&to=GBP&amt=1&t=5y" rel="nofollow ugc">http://finance.yahoo.com/currency/convert?from=USD&to=GBP&amt=1&t=5y</a>
Matt – you may want to do some google homework on this and you’ll find a ton of articles talking about the complex issues the EU automakers are facing in regards to currency. I don’t think it’s as simple as looking at exchange rates etc…
i don’t think that you meant to be insulting, so i won’t take offense. i’m well acquainted with the industry as a whole and the myriad challenges they currently face. it is my contention that while currency issues may be a significant problems for some automakers, it is being held out as a scapegoat for deeper problems within the industry. to point to the Dollar as the primary reason for difficulties is to avoid facing the realities of doing business in an atmosphere of increasing regulation, poor quality control, product mix, & labor issues.
specifically regarding MINI: MINI continues to increase sales with hardly a single period of decline (i can’t recall one, since its introduction. there are few if any incentives and the car continues to sell strongly at MSRP or marked up (in certain markets), unlike GM and Ford models outside the C6, GT or Mustang. demand is outstriping supply to such a tremendous degree that Used MINI’s regularly fetch near New prices. MINI could probably tack on another $500 across the board and still have a negligable affect on sales.
1. While currency MIGHT be a problem, it’s probably not the PAST currency trend, but what they anticipate the FUTURE currency trend to be. The European central banks are all looking to raise rates, so the dollar is widely considered to have hit it’s high water mark.
2. Also, considering what people pay for a MINI in Europe (Mucho Euro), there must be a great deal of pressure to contribute equivalent revenue from the the overseas subsidiaries.
3. Probably, if they don’t get the $$…they won’t get the cars either.
When we buy a MINI here in the US does it get converted to Euro or pounds? If pounds they must be losing. Either way it’s got to be trick for them.
BTW….love the new format and wish I knew how to do all that fancy stuff in the fine print section.
by whom? US bears maybe. the UK certainly isn’t going to raise rates anytime soon, quite the opposite actually.
<a href="http://biz.yahoo.com/fxcm/051108/1131454862.html" rel="nofollow ugc">http://biz.yahoo.com/fxcm/051108/1131454862.html</a>?.v=1
re EU
<a href="http://biz.yahoo.com/ap/051109/dollar.html" rel="nofollow ugc">http://biz.yahoo.com/ap/051109/dollar.html</a>?.v=2
btw, i prefer bloomberg data to yahoo, but i don’t have an online account (yet).
found a good bloomberg article online
<a href="http://www.bloomberg.com/apps/news?pid=10001081&sid=aAQPH7f2jHLc&refer=benchmark_currency_rates" rel="nofollow ugc">http://www.bloomberg.com/apps/news?pid=10001081&sid=aAQPH7f2jHLc&refer=benchmark_currency_rates</a>
The MCS is now costs only 20% more than the MC. Hmm.
Gabe,
Come on! Do you really think this is because of the Pound vs. Dollar debate? First, I work in a global company, and it is a little more complicated than that. You also have to look at the UK vs. Euro vs. Dollar. Money that comes in on sales in the US, gets translated to Euros for Germany’s books. Costs for the production, get billed in UK pounds but translated to Euros for the German books. There is no direct Dollar to Pound issues. In a round about way there is a link, but the Euro strength or weakness has a mightier influence than the pound to dollar. I don’t see the Z4 (made in the US) getting cheaper in Europe as the dollar falls against the Euro.
With that said, I doubt a 1.4% increase on an MCS has anything to do with currency conversions. It seems that currency is not the driving factor in pricing in the US. When translating the costs of the Mini in Europe or the UK, the US has it much cheaper. You can blame taxes, but the difference is greater than the tax influence. It seems that BMW has made a price point and stuck the Mini in that price point. Pure and simple. The increase in 1.4% is very modest in my opinion, and is probably just a drifting up of the costs to cover inflation, and stay in line with rising costs which probably also includes some currency issues. 1.4% doesn’t match inflations increases, or the currency issue.
<blockquote>With that said, I doubt a 1.4% increase on an MCS has anything to do with currency conversions. It seems that currency is not the driving factor in pricing in the US. When translating the costs of the Mini in Europe or the UK, the US has it much cheaper. You can blame taxes, but the difference is greater than the tax influence. It seems that BMW has made a price point and stuck the Mini in that price point. Pure and simple. The increase in 1.4% is very modest in my opinion, and is probably just a drifting up of the costs to cover inflation, and stay in line with rising costs which probably also includes some currency issues. 1.4% doesn’t match inflations increases, or the currency issue.
</blockquote>
Well actually that was what I was trying to say in the story (without going into too much detail). Frankly I don’t have the time to spell everything out in all the glorious detail that is apparently needed. I’d be more than happy to have you write the MF Analysis on related subjects from now on (seriously). Email me and let me know if you’re interested.
well said, dgsqweda, and way to stay on point better than i.
What? BMW wants to make more money!? And people are willing to pay the price to buy a MINI? OUTRAGEOUS!
🙂 I say, if people wants to pay, they should increase the price to meet the “demand”
Anyone have an explanation as to why the Cooper S is only going up $300 while others are increasing by $500?
HOLLY CRAP BATMAN………IT’S A SHOOTOUT ON THE PLANTATION!!!
With the last price increase, wasn’t only the MCS model affected by an additional $500 markup? That could be why this year’s increase is only $300.
<blockquote>Anyone have an explanation as to why the Cooper S is only going up $300 while others are increasing by $500?</blockquote>
I think it’s because they had already increased the price of the S by $200 for 2006 models. Or did i just made that up in my head, unno, but anywayz that just shows how BMW works. They’re a money hungry machine (just like any other corporation or any type of business, except they’re taking advantage of people) and were feeding it constantly. I guess they’re aren’t satisfied with more than $1,000 (it’s more than that, but you get the picture) profit on each Mini… eh, a part of of me just died. I know this isn’t the original Mini, but the Original Mini was meant to be an economical car, but yeah i’ll just shut up now before someone else tries to make me.
Even though I can only speak about prices in my country (Portugal), it’s still Europe. Prices rise almost the same way here. I really just don’t understand why are the USA/ Europe prices so big!
For example, the MCS in USA:
$20,900=17,750.12 EUR
The same MCS in Portugal (and most european countries):
28.800€=33,920.50 USD!!!
So, in my opinion you guys should consider yourseves lucky (not to talk about gas prices)…
LOL Rb
Hey, guess what, prices go up annually. That’s my analysis. 😉
Cuca,
I agree, but hey, we are spoiled Americans. I personally don’t know how you can afford these? Not only do you have to pay the higher price for the car, but your road taxes are outrageous, and the gas is still 2 to 3 times more expensive. Add to that, that Europeans get paid less than we do for comparable jobs.
I wonder if some of the price increasing is also to prep for th new ’07 model? We don’t yet have a ton of data, but it may be a mroe expensive car to produce, not to mention research into the turbo vs the supercharger that was spent. BMW needs to recoup those costs, expand the factory, and cover expenses of this new model. If the new one is more expensive to produce than it will require q price increase. The average consumer would not be as off-put by $300-$500 price increases every year for 4 years, whereas a price increase of $2000 in one year would turn a lot of heads.
American consumers are pretty un-observant on these kinds of things. It’s like the local new station reported the other night about gas prices. When they are rising we all start looking around for the best deal forcing the stations to be competative. When they are falling we go to the nearest station, encouraging the stations to hold off for that extra $.02. Add the marketing departement into the mix and American sheep will be happy to go buy whatever you tell them they should for whatever price it happens to be listed at…
(Yes, I am an American that can be cynical, sarcastic, and likes to exaggerate 🙂 )
<blockquote>
I agree, but hey, we are spoiled Americans. I personally don’t know how you can afford these? Not only do you have to pay the higher price for the car, but your road taxes are outrageous, and the gas is still 2 to 3 times more expensive. Add to that, that Europeans get paid less than we do for comparable jobs.
</blockquote>
“Is it love?” 🙂
Hmmm…
If I had a product that people were waiting for 2-12 months to purchase and I had limited production capacity, I’d be thinking PRICE INCREASE!!!! There is a thing called ‘supply’ and this other thing called ‘demand’. If demand is higher than supply, a manufacturer owes it to their shareholders to maximize profits by increasing prices (barring any long-term issues with competition, market positioning, etc.).
March 1, 2002 Base Price
Cooper = $16,300
Cooper S = $19,300
March 1, 2006 Base Price
Cooper = $17,450
Cooper S = $20,900
In 4 years the Cooper has gone up $1,150 while the Cooper S has gone up $1,600.
Not bad if you ask me.
That does it!
I’m buying a Cobalt instead!
J/K 😀
“However, unlike last year this will only affect cars wholesaled on or after March 1st.”
Gabe/others….can you explain this?
Does it mean if i take delivery of my MCS BEFORE march 1, I an not going to have to pay the additional $300?
Deliveries to customers AFTER that date will have the new prices?
It’s the wholesale word that is throwing me…thanks!
I’m going to order one either way, I figure why not try & save the $300, it’s almost a monthly payment…or some fun parts!
-jac
Buying a Cornblatt……yeah right.
Does anyone think that they’re trying to bridge the price gap between the current 2005 pricing and the projected 2007 pricing?
Just my uninformed, non-monetary mind at work, but I could easilly see a decent price hike with the new model leaving all of us bitching and moaning about price gouging. Maybe the increase is just there to soften the blow?!
On March 1st, if your MINI dealer has been invoiced for your MINI and you have NOT taken delivery of your MINI, you will be subject to the price increase.
The S model HT only went up $300 versus the $500 across the board because when we transitioned from the 05 to 06 model year, the S model went up $200 already.
Clear as mud? 🙂
Thanks,
Chris
First off, Gabe your site is an invaluable resource! Your info is going to save me $500!
This info on taking delivery by March 1 and the January shut down — the second one my MA did not know about – according to her means you need to get your order in very soon for December build slot to make delivery by March 1.