Marketing Automotive

During the Financial crisis, BMW has been aggressively discounting in a turnaround attempt to reduce high inventories in the US.

It is now trying something new: “built-to-order” vehicles. Already pitching the concept on the BMW US website

it’s hoping to generate built-to-order sales in America with its new X3 sport-utility vehicle, which will be introduced in early 2011.

The X3 will be manufactured in South Carolina instead of Austria, so US customers could place a custom order and pick up their car in as little as two weeks. They can design their dream X3 in up to 10 exterior colors, choose from four seat fabrics, and pick one of three wood trims. Numerous other custom options are available on various BMW models, including an iDrive entertainment system, an iPod adapter, and a panoramic moonroof.

A customized car is less likely to be subject to discounting, so it is a more attractive sale for BMW. It also gives customers exactly what they want. But it isn’t a practice that’s familiar to most US car-buyers.

Jeremy Anwyl, a car industry expert, told to Bloomberg : “Consumers are used to going into a dealership and driving away with a car. In the US, car drivers tend to be very impulsive.” In contrast, every other BMW sold in Germany is built-to-order.

Build-to-order cars may be attractive to some consumers, but they still compete with vehicles that are available on a dealer’s lot. But a number of luxury brands, including Audi and Lexus, now offer customization, so it may increase in popularity.

The real question: Will an American consumer be willing to wait to get just the car he or she wants?