Bimmer Bummer--Shifting Supply To China

We know that sales of luxury goods are soaring in emerging economies. And, now, the Wall Street Journal reports BMW is shifting its inventory allocations from the US in favor of China and Russia.

"BMW Chief Executive Norbert Reithofer said in a conference call Tuesday that the company decided late last year to look at redirecting cars between markets to mitigate currency impacts. Referring to the U.S., Mr. Reithofer said BMW is reallocating cars to more-profitable markets such as China and Russia. The weak dollar, in particular, makes German cars less profitable for BMW to sell in the U.S., because its construction costs are in euros."

Expect to see black market Z4's smuggled in to Palm Beach via Shanghai.