BMW

Bavarian brand is one more to enter the new sales model without sellers

BMW and Mini are moving to a Europe-wide agent distribution model, following the example of Mercedes-Benz and Audi who have switched to a direct sales program. BMW Group sales and marketing head Peter Nota confirmed that the brand is in talks with European dealers to switch to the agency model.

This confirmation comes a few months after Autohaus said BMW would end its dealer system in Europe from 2024 for the Mini brand and from 2026 for the BMW brand itself. The move has not yet been confirmed.

Under the agency model, BMW will hold inventory and bill customers directly. Dealers will then be tasked with delivering new vehicles and receiving a flat fee for the vehicle sold. While dealers will make less money on cars with this model, BMW says it will cut advertising costs. Auto News notes that premium automakers across Europe typically offer margins of 12-16%. Commissions on sales through the agency model will be halved.

Keep in mind that not only BMW, Mercedes-Benz and Audi are moving towards the sale of this model. Stellantis will follow suit in mid-2023 with the Alfa Romeo, DS, Lancia, Citroen, Fiat Professional, Opel/Vauxhall and Peugeot brands. The VW Group also sells its ID-branded electric vehicles through agents.

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