BMW Group is launching a direct sales model that should make it easier for customers to purchase a vehicle
In 2024, the BMW Group is set to initiate the launch of its new sales model, gradually rolling it out across Europe. This rollout begins on January 1, 2024, with MINI in Italy, Poland, and Sweden. Subsequently, other European countries will transition, with BMW making the switch from 2026. The new sales model represents a significant milestone, enabling the sale of all new BMW and MINI vehicles, as well as nearly-new BMW Group cars, through a genuine agency model throughout Europe.
This sales approach promises advantages for customers, retail partners, and the BMW Group and is very similar to what certain manufacturers are already doing, and moves closer to a subscription style model which begs the question: are cars simply a commodity? It introduces consistent nationwide pricing for identical vehicle models, enhancing transparency for customers. Moreover, as the shift to the agency model progresses, the BMW Group will digitalise the entire purchasing process, offering customers a choice between online and in-person buying experiences, allowing for a seamless transition between the two – very similar to what Tesla currently do. This transformation will be facilitated by an end-to-end integrated IT system and full access to the existing closely-knit retail network.
Pieter Nota, Member of the Board of Management of BMW AG, and in charge of Customer, Brand, and Sales, stated, “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. The aim of our new sales model is very clearly to increase customer satisfaction and offer the best premium customer experience in the industry.”
Upon full implementation of the new sales model, the BMW Group will continue to rely on its existing retail network, leveraging its strength as a highly functional and well-established sales structure. This new model was developed with active input from retail partners. Pieter Nota expressed gratitude to the retailers for their constructive cooperation and overwhelming support, emphasizing their pivotal role in maintaining personal customer contact.
The agency model offers retailers an attractive and forward-looking foundation for their businesses, along with enhanced planning certainty. Retailers will receive a calculated fixed commission per vehicle sold, inclusive of various factors. This remuneration structure extends to online purchases, ensuring fair compensation for vehicle deliveries. The new sales model empowers retailers to concentrate on providing exceptional customer consultations and care while granting them access to the BMW Group’s complete inventory. Retailers have responded positively to this new model, with all European retailers already having signed contracts for MINI.
Today marks the commencement of online pre-orders for the all-new all-electric MINI Cooper and the new MINI Countryman in Italy, Poland, and Sweden under the framework of the new sales model with no word yet on whether or not this will happen in the UK.