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BMW May Slash Diesel Price Premium

Automaker considering AWD 3-Series diesel, other changes.

by on Sep.02, 2009

Would a $2,000 price cut - and all-wheel-drive - boost demand for the BMW 335d and other diesel models?

Would a $2,000 price cut - and all-wheel-drive - boost demand for the BMW 335d and other diesel models?

Struggling to boost the appeal of diesel-powered products, BMW of North America hopes to win approval from the German automaker’s board to directors to cut prices and add new features, such as all-wheel-drive.

Though sales of the maker’s first two diesels, the X5 35d Sport Activity Vehicle, and the 335d sedan, have been reasonably strong, says BMW of North America CEO Jim O’Donnell, there’s significant room to boost volumes, he tells TheDetroitBureau.com.

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“We’re trying to convince our colleagues in Germany that if you price diesels right, there’s a market for it,” despite the traditional concerns about the technology among American motorists, says O’Donnell.  “It was an experiment and we think we’ve been asking too much of a premium.”

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