BMW Group delays agency sales

author: FutureCar Staff    

BMW has decided to delay the implementation of agency sales in the UK, as it observes how the transition goes for its competitors. Initially, BMW had informed dealers that agency sales would begin in 2026, starting with Mini in the following year. However, sources now reveal that the introduction of agency sales for Mini has been postponed by at least six months, to 2025. A dealer stated, "Mini had informed dealers that agency sales would commence on October 1, 2024, but it will now be delayed until at least March 2025."

The decision to delay agency sales at Mini is believed to be influenced by the challenges faced by other car manufacturers, such as Mercedes, during their transition to agency sales. Mercedes has experienced a decline in market share in 2023, raising concerns among dealers about the success of BMW's main premium car rival in adopting agency sales. While Mercedes' CEO, Gary Savage, previously claimed that the switch to haggle-free car sales was successful, the company has resorted to heavily subsidized deals to boost demand, including the upcoming "Cyber Weekend" sales event featuring 0% finance deals on its range.

When questioned about the delay at Mini, a spokesperson for BMW did not provide a specific reason but stated, "The BMW Group will begin implementing its new direct sales model with Mini in Italy, Poland, and Sweden from January 1, 2024, as planned. The implementation in other European countries, including the UK and Ireland, will follow in stages and will be communicated at a later date. Our priority is to ensure a smooth transition without compromising the quality and stability of our customer experience, and our retail partners fully support this approach."

BMW is not the only manufacturer to postpone its transition to agency sales. In March, VW Group cited "internal systems" as the likely cause for delaying its rollout until at least 2024, despite initially planning for it to occur this summer. Stellantis has also pushed back its move to an agency sales model to 2024, while Ford is preparing for a similar transition in the near future. Daksh Gupta, former CEO of Marshall Motor Group, disclosed that he has been assisting Ford with its plans.

Car Dealer's research in July revealed that 18 car manufacturers have already adopted or will soon adopt fixed-price, no-haggle agency sales agreements with their partners. Within the next six months, Mini, Skoda, Smart, and Genesis will all transition to agency sales. When Car Dealer contacted 47 car brands in the UK regarding their plans for agency sales, only eight categorically ruled out the move, while 21 either declined to comment or did not provide a statement.

FutureCar Staff