Direct agency model: BMW is changing the way it sells cars through dealers
BMW is preparing for a major sales reform in Europe from 2027. The company is switching to a direct agency model, which will radically change the work of dealers and reduce distribution costs.
Here's What We Know
The pilot project was the Mini brand - it switched to the new format in 2023, starting with Italy, Poland and Sweden, and then expanding to 20 more markets. Now it's BMW's turn. Initially, the start was scheduled for 2026, but the timing has moved: the sequence of implementation by country will be announced later.
According to Jochen Goller, head of sales at BMW Group, Mini's experience has been extremely successful: from attracting a customer to handing over the car, the feedback is positive.
The essence of the agency model is that dealers will no longer own the cars in stock and will no longer set their own prices. The automaker will be fully responsible for inventory, marketing and sales. Dealers will become intermediaries and will receive fixed remuneration from each transaction.
According to industry experts, such a scheme can reduce distribution costs by at least 10%. In addition, it gives the brand direct contact with customers and full control over pricing policy, which was previously hindered by negotiations with individual dealers.
BMW specifies that it is adjusting the timing of the launch of the new model for the sake of optimal realisation of the project. Additional details will be announced later.
Source: Autonews
