Sales only via headquarters: BMW puts an end to dealer discounts

In order to be able to enforce uniform prices for its new cars, BMW intends to conclude sales contracts only centrally in the future.

Sales only via headquarters: BMW puts an end to dealer discounts

In order to be able to enforce uniform prices for its new cars, BMW intends to conclude sales contracts only centrally in the future. Car dealers are thus deprived of the opportunity to give discounts. Meanwhile, the Munich group is threatened with a hefty fine in Great Britain.

BMW dealers will soon no longer be able to give car buyers discounts - the group wants to conclude the purchase contract with customers itself in the future. Sales director Pieter Nota told the "Automobilwoche": "We will start with the Mini brand in Europe in 2024 and introduce an agency model for all BMW models in 2026." This means that the dealer only acts as an intermediary and customer advisor on behalf of BMW.

The group can thus enforce uniform prices for its new vehicles throughout Germany. For each vehicle sold, BMW will pay the dealer a commission, Nota said: "This applies both to the car that a regular customer buys from his dealer and to vehicles that customers buy entirely online. In these cases, they have to select an agent who delivers the vehicle. The commission is retained in both cases."

Meanwhile, the British competition authority CMA has imposed a fine in connection with investigations against BMW for possible antitrust violations. The CMA said it assumes that the Munich carmaker is withholding important information about the investigation into possible collusion in the collection and recycling of scrap cars. The penalty is £30,000 plus £15,000 per day until BMW provides the requested information.

BMW stated that it would cooperate with the relevant authorities within the framework of the legal requirements. However, the company reserves its rights of defense if authorities exceed their statutory powers. "The fine imposed by the CMA is in response to BMW AG's position that the CMA has no power to compel foreign companies to produce documents that are entirely outside the jurisdiction of the UK."

BMW will have the legality of the penalty reviewed by a court. The background to the dispute are investigations that were initiated in mid-March. This involves agreements on the collection, treatment and recycling of scrap cars. In addition to the EU Commission, the CMA had also initiated investigations at the time.