BMW threatens to stop selling
550 of 600 BMW dealers affected
According to a report from the newspaper “Süddeutsche Zeitung”, the Bavarian car manufacturer BMW could be threatened with a sales stop in October. The reason is a dispute between the manufacturer and the dealers. The company wants the dealers to sign a new contract by the end of September after they have earned significantly less.
New sales strategy annoys retailers
Since only 50 of the 600 BMW car dealers belong to the group, there could be a threat of a nationwide sales freeze, as many of the dealers concerned would not agree with the new contract. The President of the Association of German BMW Dealers, Peter Reisacher, told the Süddeutsche Zeitung: “We will not sign the contracts for a 2018+ business model that have been submitted to us.”
The association’s allegations go even further: the partnership with the dealers has not been lived for ten years. The Group is taking on more and more tasks independently, such as online business. At the same time, however, the pressure on retailers to invest in their salesrooms is growing. The concern: declining margins and a stronger trend towards direct sales.
First profit warning in ten years
And BMW? The car manufacturer is still calm. A statement on the dispute is not yet available. According to the Süddeutsche Zeitung, they don’t want to risk a last-minute compromise. After all, the deadline has not yet passed and there is still time to negotiate the new contracts.
If no agreement is reached by the end of the week, the dealers could stop selling from 1 October. This is an unfavorable time for the carmaker, as the company recently had to revise their original positive forecast for the year. Sales and profits will thus rather fall than rise.