November 13, 2008

BMW Establishes Large Premiums for Clean Diesel Models

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BMW of North America LLC will charge a higher premium for its diesel vehicles as opposed to its major competitors, reports Automotive News. The premium for one model exceeds $4,000.

The X5 xDrive35d, a diesel crossover, will cost $52,025. Its gasoline counterpart, the X5 xDrive30i, totals $47, 925. Additionally, the 335d diesel amounts to $44,725, compared to $40,925 for the gasoline model. All prices include shipping.

As for BMW’s rivals, Mercedes-Benz will charge $49,475 for the ML320 Bluetec — a $1,501 premium — compared to the $47,974 the gasoline model of the ML350 will cost consumers. Diesel models of the Volkswagen Jetta sedan and wagon will have a premium around $2,000.

BMW maintains that although diesel fuel costs more than premium gasoline, which all of the company’s vehicles are required to use, the ultraclean diesel is nearly 30 percent more fuel-efficient. The 3-series diesel model will be able to go 560 miles on one tank; the X5 has range of 585 miles before it needs to be refueled. 

The X5 xDrive35d is set to go on sale in late December in the United States; however, some dealers may not be full stocked with the vehicles until the first quarter of 2009, says BMW.

Additionally, the company has not projected diesel sales although they believe it could represent 25 percent of U.S. sales in the long term.

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