2024 will see the BMW Group launch the rollout of its new sales model. It will be introduced across Europe in several stages, starting with MINI in Italy, Poland and Sweden on 1st January 2024. The remaining European countries will gradually follow, with BMW scheduled to transition from 2026.
The upcoming rollout represents an important step and will allow all new BMW and MINI vehicles and nearly-new BMW Group cars to be sold via a genuine agency model across Europe. The new sales model will benefit customers, retail partners and the BMW Group alike, according to BMW Group, with retailers remaining as the personal interface to customer and earning fixed commission per car sold.
The news from BMW Group comes at a time when dealers are becoming increasingly concerned over the growth of agency agreements, with October’s Startline Used Car Tracker reporting that dealer worries on the subject have doubled in the last month.
However, in a recent interview with the German publication, Automobilwoche, Pieter Nota, Member of the Board of Management of BMW AG and responsible for Customer, Brand, Sales, said that BMW is not interesting in getting rid of its dealer network but rather in finding a way that will be beneficial for the manufacturer, dealer, and customer.
“This transition to direct sales with retail partners is a key milestone in the realignment of our Sales division, which has been ongoing since 2020. The new sales model will enable us to communicate directly with our customers and give the BMW Group a direct customer interface,” said Nota.
“The aim of our new sales model is very clearly to increase customer satisfaction and offer the best premium customer experience in the industry.”
Standard nationwide pricing for identical vehicle models will ensure price transparency for customers. In addition, as the transition to the agency model progresses, the BMW Group will digitalise the entire purchase process, giving customers a choice between online and physical purchase experiences – and switching seamlessly between the two. It will all be made possible by an end-to-end, integrated IT system landscape – plus full access to the familiar close-knit retail network.
When the new sales model is in place, the BMW Group will continue to depend on its existing retail network, capitalising on one of its key strengths as a company: a highly functional and established sales structure. The new sales model was created in a lengthy process in which retail partners were actively involved. “I would like to say a big thank-you to our retailers for their constructive cooperation and the very positive feedback they have given us by signing 100% of our MINI agency contracts. That’s clear confirmation of our plans to move forward together,” said Nota. The BMW Group expects demand for personal customer contact to continue in the future, with retail partners playing a key role.
According to BMW Group, the agency model offers retailers an attractive and future-proof foundation for their business as well as greater planning certainty. Retailers will earn a fixed commission per vehicle sold that is carefully calculated and takes the full range of factors into account. The same goes for online purchases, where they will be fully remunerated for vehicle deliveries.
In addition, the new sales model allows retailers to focus on providing the best possible customer consultations and care and offers them access to the BMW Group’s entire stock of vehicles. BMW Group has received positive feedback on the new sales model from retailers, with all European retailers already signing contracts for MINI.
