BMW to Decrease Dealership Partners in Germany

A direct-to-customer sales model is one that BMW is slowly working toward. This is in direct opposition to the conventional method of selling automobiles, which involves dealers authorized by the manufacturer. Some BMW vehicles are sold directly to customers in Europe, and those who have done so seem to like it. Which is the reason BMW is hoping to extend that deals model all through Germany.

BWM’s dealership partners in Germany will decrease from 120 to just 100 over the next few years. BMW will not renew the contracts of 20 of those 120 dealer partners, despite the fact that these partners own several locations across Germany. Instead, by 2026, BMW intends to implement the direct sales model exclusively in Germany. However, by 2024, BMW intends to switch all MINI sales to this new model.

The new business model has many advantages and disadvantages, but it appears that customers also prefer it. BMW has complete control over sales, discounts, and pricing thanks to direct-to-customer sales. Customers may lose out on special discounts as a result, which may have previously been available to them as a result of having close relationships with particular dealers. It’s possible that certain customers’ relationships with dealers have also earned them special car allocations that they might not have received under the new sales model.

However, there are a few benefits that customers really appreciate. To begin, they are aware of precisely what they are receiving. They see an advertised price, which is the cost of the automobile. There are no modified dealer markups, no concealed dealer fees, and no shady salespeople attempting to sell warranties for the aftermarket. Also, you can’t spend three hours in a dealership listening to a salesperson pretend to talk to a manager about the price. BMW simply provides you with a price and you place your order. Peace of mind comes from not having any wiggle room or grey areas.