Mercedes-Benz and BMW prices to rise – report

Mercedes-Benz and BMW have foreshadowed plans to deliberately restrict supply of new motor vehicles to maintain or increase prices – even after the current industry-wide semiconductor shortages ease, according to a report from the Financial Times.

In concerning news for luxury-car buyers who already pay top dollar, the German automotive giants have indicated they plan to make up for a decade of over-supply of new vehicles and heavy discounting.

In briefings with the British press, senior executives for both BMW and Mercedes have foreshadowed plans to keep supply of new vehicles tight so they can maximise profits and maintain higher prices.

“We will consciously undersupply demand levels … at the same time we [will] shift gears towards the higher, the luxury end," Harald Wilhelm, Mercedes-Benz’s Chief Financial Officer, told the UK's Financial Times.

Nicolas Peter, Chief Financial Officer at BMW, said: “[We have] seen a significant improvement in pricing power in the last 24 months … [the plan is to maintain] the way we manage supply to maintain our pricing power on today’s level.”

Representatives for Mercedes-Benz and BMW in Australia declined to comment on the forecasts by their head office counterparts when asked for clarification by Drive.

This story will be updated if more information becomes available.

Mercedes-Benz has reported 20,431 cars as sold (up 7.6 per cent) in Australia so far in 2021.

BMW Australia has reported 17,500 cars as sold (up 16.6 per cent) in the first eight months of 2021.