BMW embraces the direct sales model in Europe

The BMW Group plans to make the leap gradually to a direct sales model in Europe. MINI will be the first brand in the group to take this step starting January 1, 2024, in three European countries: Italy, Poland and Sweden. These three European markets will be followed gradually by others until the transition is complete. The same will also happen with the BMW brand, although in this case the process will begin somewhat later. The Bavarian firm aims to begin making its first direct sales to customers starting in 2026, carrying out this transition gradually as well.

The BMW Group will thus abandon in Europe the current model that relies on dealerships, turning them into mere intermediaries with no decision-making capacity.

This means that when a customer goes to a BMW dealership to purchase a vehicle, the sales contract will no longer be made between the two parties, but between the customer and BMW itself. The dealership will therefore be a mere sales agent that receives a fixed commission for each sale made. In this way, it will also no longer make sense to visit several BMW dealerships to compare where the best price can be obtained for the same vehicle, since the amount to be paid will be set by BMW and will be exactly the same at all of them.

At BMW they believe that with this new model everyone wins

In the press release published by the company, the Bavarian firm asserts that this new model will be beneficial for both customers and dealerships, as well as for the BMW Group. Customers will enjoy greater price transparency, as prices will be uniform for each model within the same country. Additionally, there will be no price discrepancies whether the purchase is made in person or online, and customers may also enjoy a hybrid experience in which, for example, the order is completed online and the vehicle is then delivered at a dealership.

As regards dealerships, BMW states that with this new model they will not only obtain a fixed income for each customer who comes in to purchase a specific model, but also for all those who place their order online and select that dealership for delivery. Although in both cases the commission they receive will probably not be the same.

The Bavarian firm also asserts that dealership acceptance of this new model is proving very favorable. In the case of the MINI brand, all dealerships in Europe have already given their approval. Meanwhile, negotiations continue for the BMW brand, given that its transition to the direct sales model will begin a couple of years later.

As a result of this new sales strategy, BMW is already accepting online reservations in Italy, Poland and Sweden for the new Mini Cooper electric and the Mini Countryman.