BMW Drives New 2011 X3's Prices Down, Starts from $37,625

BMW has announced U.S. pricing for its all-new, second-generation X3 before the crossover model arrives in dealerships at the end of the year. Customers can choose from two variants, the X3 xDrive28i that comes with a 3.0-liter inline-six engine producing 240HP and a base price of $37,625, or the X3 xDrive35i with a 300HP turbocharged-six priced at $41,925. Both prices include $875 destination and handling fee.

According to the Bavarian firm, the entry price for the X3 is $2,100 lower than the previous generation model [2010 X3] which started at $39,725.

The two new X3 models come equipped with a standard 8-speed automatic transmission and BMW's xDrive intelligent all-wheel drive system, as well as with Bluetooth connectivity, iPod/USB interface, anti-theft alarm system, and on the X3 xDrive35i, standard Xenon Adaptive Headlights.

The new X3 is built exclusively at BMW's Spartanburg, S.C. factory, with the company claiming that customers will be able to make changes to their vehicle order until six days prior to the start of production.

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BMW’s South Carolina Factory May Get Fourth Model, Possibly 3-Series

BMW is considering adding a fourth model to its Spartanburg, South Carolina factory in order to further compete with U.S. luxury market leaders Lexus and Mercedes-Benz.

The Bavarian firm's chief, Frank-Peter Arndt believes an additional "volume model" could be added to Spartanburg's production line. The introduction of a fourth model would help reduce BMW's exposure to foreign currency, which presently tops US$14 billion. IHS Automotive analyst Rebecca Lindland believes the 3-Series is the most likely candidate for production at Spartanburg: "The 3-Series is a no-brainer." she said.

Of the 1.07 million vehicles BMW delivered last year, 397,103 of them were 3-series models. In spite of a 9.2% rise in U.S. sales from January to September 2010, BMW is still trailing behind Mercedes-Benz and Lexus.

The Spartanburg factory - which makes BMW's X5 and X6 SUVs - recently underwent a US$750 million renovation to squeeze in the compact X3. The introduction of the latter model meant an increase in BMW's U.S. production capacity by a whopping 50%. Roughly 70% of the vehicles built in Spartanburg are exported, with more than 65% of the component parts sourced from North American suppliers.

Giving further credence to the 3-series at Spartanburg rumor is the December 2009 announcement by rival Mercedes-Benz that it would begin building the C-Class at its Alabama factory. It only figures that BMW would want to face this threat head on.

By Tristan Hankins

Source: Bloomberg

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