Source: Gasgoo Author: Xing Yun
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According to foreign media reports, BMW plans to transform its core brands into an agency sales model starting in 2026.Until then, the company has been silent on when this shift will take place.
The foreign media report said that dealer reports indicate that from January 2026, Germany will be one of the first countries where BMW will switch to the new sales system. BMW said it would not comment on the exact date.
Previously, BMW sub-brand MINI has completed the change in sales methods. On 1 January this year, MINI sales in Italy, Poland and Sweden have been changed to an agency model. A BMW spokesperson said that MINI’s shift got off to a good start.
Image source: BMW
However, in the German local market, MINI’s sales model conversion has been delayed by six months. Dealers said that the current new date is October 1, 2024, and the reason for the delay is information technology issues.
The change in BMW’s sales model will take place under the leadership of Christian Ach, who will succeed Christian Teuchert as head of BMW’s German market on 1 March.From 2018 to 2021, Ach was previously head of sales for BMW Germany.
So far, dealers have been very happy with the new contracts offered by BMW, with one BMW dealer saying of the current MINI sales contract: “The contract is very fair to work with them.”
The commission rate provided by BMW is 7.4%, of which 5.5% is a fixed commission, which has become a benchmark in the industry. In comparison, Stellantis dealers have a fixed commission of 4% and a variable commission of 1%.
Among its main competitors, Mercedes-Benz has the highest commission rate at 6.5 %; Audi has a 6 per cent fixed commission as well as a 2.5 % variable commission, in addition to an extra 1.5 % variable commission for selling electric cars, however, Audi is not adopting a pure agency model.
BMW will invoice customers directly, while dealers charge a fixed sales fee. BMW says this sales model ensures uniform pricing across the country for the same models, thereby increasing price transparency.
