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SEARCHWOODCLIFF LAKE, N.J. - BMW is restricting the supply of its European-built X3 compact crossovers to sustain profits amid global decline in auto sales.
BMW X3
WOODCLIFF LAKE, N.J. - BMW is restricting the supply of its European-built X3 compact crossovers to sustain profits amid global decline in auto sales, reported Automotive News.
According to the news source, the company has reduced the supply of X3 crossovers in the U.S. in a bid to curtail the drop in profits caused by the strong euro. In 2008, along with cutting its overall U.S. allocation by 40,000 units, BMW systematically brought down its sales as part of its plan to restrict X3 imports.
The X3 model is manufactured by supplier Magna Steyr in Austria and the strong euro has lowered the profits on vehicles sold in US dollars. Consequently, BMW plans to shift the production of the redesigned X3 to its factory in Spartanburg, South Carolina, in 2010.
BMW's X3 faces threat from the lower-priced models such as the Mercedes-Benz GLK, Audi Q5, and Volvo XC60, which are all priced more than $2,000 below the X3, the news source reported.
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