by Major Changes in BMW Sales in Europe
BMW is preparing significant changes to its dealer network in Europe. Following the successful implementation of the agency sales model for Mini, a similar approach will be applied to the main BMW brand. This will radically change the car sales process on the continent. The German manufacturer claims that this change will simplify operations, reduce costs, and improve the customer experience.
Planned Transition to a Direct Sales Model
Initially, BMW planned to switch to a direct sales model in early 2026, but this deadline has been postponed. The brand still intends to implement this system, and the sequence for each market will be determined later. Mini was the first to switch to this model last year, starting in Italy, Poland, and Sweden, and then expanding to 20 additional markets.
Features of the New Model
Under the new direct sales agency model, dealers will no longer own vehicle inventories and will not have the right to negotiate prices. Instead, they will act as intermediaries, while the automaker will own the inventories and finance marketing and sales campaigns. Dealers will receive a share of the car sale as a fixed reward.
We are even more convinced that this is the right approach. The process is fully functional, from lead generation to vehicle handover, and the feedback is extremely positive.
Benefits for Manufacturers
Industry estimates suggest that the agency approach can reduce distribution costs by ten percent or more. It also provides brands with a direct connection to customers throughout the entire purchase process and greater control over pricing, which was previously blurred through individual negotiations with dealers.
BMW’s Future Steps
BMW has not yet provided an exact date for the transition. In a statement regarding the delay, a company representative reported that the firm is reviewing the implementation plan for BMW, making minor adjustments to the overall schedule to ensure rapid implementation and a high level of operational efficiency.
These changes reflect a general trend in the automotive industry, where manufacturers are trying to optimize supply chains and improve interaction with end consumers. The transition to a direct sales model could be a key step in adapting to modern market demands, especially in the context of growing online sales and changes in buyer behavior. Such innovations often promote greater transparency and standardization, which can positively impact customer trust in the brand.
