Originally Posted by Rollo
It's interesting that you mention VW, MB, BMW etc. because this will prove my point.
The BMW 3-Series is pretty well much a standard car in most markets. I looked at four of them - The UK, Germany, Australia and the US. Prices are thus:
AU - BMW 320i - $57,500.00 - USD 53,522.03 - Built in Rosslyn, South Africa
DE - BMW 320i - €30,900.00 - USD 42,141.15 - Built in Leipzig and Munich
UK - BMW 320i - £25,175.00 - USD 38,848.62 - Built in Leipzig and Munich
US - BMW 328i - $33,500.00 - USD 33,150.00 - Built in Kaliningrad and Shenyang, China
Not only is the 3-Series for the US market cheaper, but it has a bigger engine as well. Now apart from the fact that American petrol is 87RON as opposed to Australia's 91RON and Europe's 95RON, invariably if you reduce the price, in order to achieve that price point, the quality of the materials going into it are going to be cheaper to begin with, or you find a cheaper labour force, which explains why so many cars are built in Mexico.
It follows that a BMW produced for America is going to built more cheaply than their European counterparts, simply for the reason that BMW has to chase a lower price point than in Europe.