BMW Group delays agency sales

author: FutureCar Staff    

BMW has decided to delay the implementation of agency sales in the UK by at least six months. The company wants to observe how the transition process goes for its competitors before proceeding with its own plans. Initially, it was reported that BMW would introduce agency sales in 2026, starting with Mini next year. However, sources now reveal that the transition for Mini has been pushed back to 2025.

A dealer stated, "Mini had informed dealers that agency sales would begin on October 1, 2024, but now it won't happen until at least March 2025." The decision to delay the implementation was reportedly influenced by the challenges faced by other car manufacturers, including Mercedes, during their transition to agency sales. Mercedes experienced a decline in market share in 2023, raising concerns among dealers about BMW's success in adopting agency sales.

Mercedes' CEO, Gary Savage, had previously claimed that the switch to haggle-free car sales was successful. However, Mercedes has been aggressively offering heavily subsidized new car deals to boost demand. This weekend, they will launch a series of 0% finance deals during a "Cyber Weekend" sales event.

A spokesperson for BMW did not provide specific reasons for the delay at Mini but stated, "As planned, the BMW Group will introduce its new direct sales model with Mini in Italy, Poland, and Sweden from January 1, 2024. The implementation in other European countries, including the UK and Ireland, will follow in stages and will be communicated at a later date. We are focused on ensuring a smooth transition without compromising customer experience and remain flexible in implementing our new direct sales model."

BMW is not the only manufacturer to delay its transition to agency sales. Earlier this year, VW Group announced that it would postpone its rollout until at least 2024 due to "internal systems" issues. Stellantis has also delayed its move to an agency sales model, while Ford is planning a similar transition in the near future.

Car Dealer's research into agency sales revealed that 18 car manufacturers are either already using or planning to 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. However, when Car Dealer asked 47 car brands operating in the UK about their plans to move to agency sales, only eight definitively ruled it out, while 21 either failed to comment or chose not to issue a statement.

FutureCar Staff