With the current financial state of the US economy and the decline in sales of BMW models, BMWNA has watched sales dip for the first time in a long time. This comes at a time when the company has just invested in expanding its headquarters in NJ, along with other capital investments.
This past spring brought about a change in the used car market. Plummeting prices forced BMW to write down some of its losses. The losses continue due to the poor state of the market. With more cars to come off lease with inflated residuals, how can BMW offset these losses and the money they have already spent elsewhere? Easy: sell some of its more liquid assets.
BMWNA owns several top-performing dealerships in affluent areas that are not usually influenced by market conditions. For the past several months, we have heard rumors that at least one dealership was on the market. It is not only a BMW brand store, but also houses and has the rights to the other brands that encompass the BMW Group – specifically MINI.
You may be thinking to yourself, “How much can a dealership cost?” For a single brand store in a busy market, prices can reach $20 million or more. What this particular store will bring in is still up for debate, but there are several active suitors.
We have chosen to not go into too much detail while this situation continues to evolve. We will stick to that until things are finalized. After the recent news about allocations and jobs being cut, we thought that we should also inform you that BMW is seeking other cost cutting measures to help with the market conditions.