BMW Isn’t Closing Any Dealerships In Germany Despite Financial Pressure

BMW is standing by its German dealership network despite mounting financial pressure on retailers and a major transformation of the automotive business. While some dealers are struggling to turn higher sales into better profits, the automaker has no plans to reduce its nationwide number of locations.

Speaking to Automobilwoche, Tim Beltermann, BMW’s head of the German market, acknowledged that the business environment has become considerably more challenging after several exceptionally profitable years. However, he doesn’t see a widespread financial crisis across the retail network.

When asked whether BMW dealers face a situation similar to Volkswagen and Audi, where 29% of businesses reported negative operating margins in the first half of 2026, Beltermann replied that the figure is “significantly lower” for BMW. The company is working with struggling partners to improve processes, reduce structural costs, manage inventory more efficiently, and generate additional revenue from servicing and financial products.

BMW isn’t looking to consolidate its network despite several recent dealership acquisitions. Beltermann says these transactions are primarily driven by succession issues, with many family-owned businesses lacking a younger generation willing to take over. He explicitly states that BMW currently plans to operate just as many locations in Germany as it does today.

BMW Believes EVs Won’t Hurt Dealership Profits

One of the biggest concerns surrounding electrification is the potential loss of aftersales revenue. EVs don’t need oil changes and have far fewer mechanical components than combustion-engine vehicles, which could reduce workshop visits and profitability.

Beltermann isn’t particularly worried. BMW believes dealers can fully compensate for an estimated 20 to 30% decline in service revenue through maintenance packages, insurance, accessories, financing, and better customer retention. The company’s Proactive Care system can also help dealerships identify maintenance opportunities through vehicle data.

In fact, Beltermann says retailers could eventually make even more money than before if they successfully adapt their business models.

BMW’s Agency Sales Model Pushed Back To 2028 In Germany

Meanwhile, BMW is preparing for another major change in Germany. The agency sales model will arrive on July 1, 2028, rather than in 2027, as the automaker needs more time to prepare its processes and IT infrastructure. Beltermann says the complexity of BMW’s vehicle lineup, customer groups, sales channels, and inventory management requires additional work.

Under the new system, dealerships will no longer need to keep as many cars on site. A smaller retailer that currently stocks five to seven vehicles could eventually have just two or three while gaining access to BMW’s entire German inventory. The agency model will first roll out in Sweden and Poland next year.

BMW Dealerships Are Getting A Fresh Look

The separate Retail Next showroom concept is also gaining traction. Although implementation won’t become mandatory until 2029, BMW says dealer demand already exceeds the company’s capacity to support conversions. Beltermann even argues that the concept improves profitability rather than hurting it.

BMW wants to reassure its retail partners that it isn’t planning to abandon smaller markets or force dealership closures. However, the message is clear: staying profitable will require adapting to new sales models, investing in customer relationships, and finding fresh revenue streams as electric cars become increasingly common.

Source: Automobilwoche (subscription required)