BMW will soon stop offering dealer discounts on new cars

BMW will soon stop offering dealer discounts on new cars

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Of: Andreas Hoss

A BMW employee polishes the BMW i8 logo with a cloth. © Jan Woitas/dpa

The cars will soon be available to order directly from BMW. But then the seller’s discount will also be removed, explains CFO Nicolas Peter in an interview.

Munich – Munich car manufacturers bmw wants to implement a new agency model in sales. “We want to give customers the opportunity to order directly from us,” Chief Financial Officer Nicolas Peter said in an interview with Mercury of Munich. One is currently “in constructive negotiations” with dealers. The new design should Mini apply from 2024, for BMW it should be introduced in 2026. So the dealers would be reduced to a large extent to the service network, and the prices of new cars should not be discussed again from then on.

“Like many other products that can be bought on the Internet, the price will be adjusted,” explained Peter dem Mercury of Munich, which also contains information from the German BMW Dealers Association. “We see the manufacturer’s decision to change the agency model due to the changing market conditions in Europe as risky and at the same time promising,” it says. “We will only succeed here if we manage to set the right criteria and course together with BMW AG.”

BMW wants to make hydrogen cars ready for series production

Peter also emphasized that BMW continues to research hydrogen drives and these are ready for series production he wants to bring. “We think that hydrogen is an option in the medium term,” says Peter. Hydrogen cars can be refueled quickly and are suitable for long distances. Along with them, one also does not rely on important battery raw materials such as lithium, the price of which has risen sharply recently.

The basis of the hydrogen infrastructure already exists: “In Europe there are almost 60,000 kilometers of natural gas pipelines through which hydrogen can be transported with minor modifications,” says Peters. “The filling station network can also be converted into a supply of hydrogen vehicles.” This is primarily interesting for trucks and buses. “But once this infrastructure is in place, it can also be used for cars.”

BMW CFO: “Private demand in Germany has slowed significantly”

BMW entered reported an increase in revenue in the third quarter. The group earned about 3.7 billion euros before interest and taxes, about 28 percent more than a year ago. However, private demand has slowed in Europe. “Car markets like France and Italy are strong, but private demand in Germany and the UK has slowed down a lot,” said Peter in an interview conducted around the balance sheet’s press conference.

Doing business in Germany is currently more difficult for two reasons. “For one thing, inflation higher here than in France. On the other hand, the energy problem is more present than in other countries. That reduces the desire to buy,” explained Peter. “But we think that things will pick up again in Germany and Europe at the end of 2023.”