BMW is switching to a direct sales model in Europe

At BMW, the changeover is planned from 2026. With this step, all new BMW and Mini vehicles as well as young used cars of the BMW Group in Europe will be sold “in the true agency model” in the future, according to the company.

This means that it is no longer the local dealer who will ultimately be the contractual partner for the customer, but BMW itself. The dealer only acts as an intermediary service provider (i.e. as a sales agent) and receives a share of the vehicle purchase via a flat fee. Individual price negotiations with the dealer are then no longer possible, as the dealer is no longer the contractual partner.

According to the press release, the new sales model will benefit “customers, dealer partners and the BMW Group in equal measure”. For the customers, price transparency through nationwide uniform prices per identical vehicle model or the seamless change between the physical and digital purchase experience are cited, for example. Since the sales channels are being digitised, the customer can pick up the ordering process at home where the consultation at the dealership left off – or vice versa.

For the dealers, for example, the agency model is intended to make it easier to plan. “They will earn a fixed commission per vehicle sold that is carefully calculated and takes the full range of factors into account. The same goes for online purchases, where they will be fully remunerated for vehicle deliveries. In addition, the new sales model allows them to focus on providing the best possible customer consultations and care and offers them access to the BMW Group’s entire stock of vehicles,” the statement said.

There has been “very high approval” of the new sales model from the retail partners, BMW said. For the Mini brand, all previous partners in Europe have signed the contracts for the agency model. Conversely, this means that for BMW not all current dealers are on board yet – but there are still two more years to go.

The agency model in sales is considered the last major project of Sales Director Pieter Nota. He is leaving the BMW Group at the end of October, with China expert Jochen Goller taking over as reported. “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,” says Nota. “The aim of our new sales model is very clearly to increase customer satisfaction and offer the best premium customer experience in the industry.”

The first concrete step in the three premiere countries has already been implemented: As of now, online reservations for the new all-electric Mini Cooper and the new Mini Countryman are available for customers in Italy, Poland and Sweden as part of the new sales model.

Update 5 August 2024

On 1 October, the BMW Group will switch to a direct sales model for its Mini brand in Germany. It has already done so for the markets Italy, Poland, Sweden, Norway, and Finland in the first half of 2024 (see above). Germany and other European markets will follow on 1 October.

“The switch to agency sales with retail partners is a key milestone in our sales realignment,” says BMW Board Member for Sales Jochen Goller, who took over from Pieter Nota on 1 November 2023. “We see the future of sales in Europe as a direct sales model and are convinced that our customers, the retail organisation, and we as a manufacturer will benefit from this.”

bmwgroup.com, bmwgroup.com (update, in German)