BMW had planned to adopt the agency model in Europe next year, but the rollout has been postponed until 2027. That doesn’t mean the company is having second thoughts. Actually, it’s quite the opposite. The introduction of direct sales for MINI last year in several European countries has been an encouraging sign that it will also work for the core brand.
In an interview with Automotive News Europe, BMW board member Jochen Goller expressed confidence in the shift: “We’re honestly even more convinced than before that that is the right approach.” While “direct sales” might sound like cutting out the middleman, dealerships still play a role. The brick-and-mortar shops act as intermediaries, but they’re no longer contractual partners.
The agency model brings fixed prices for customers across each country and fixed commissions for retailers. As a result, haggling disappears, since the automaker, rather than the dealer, owns the cars and controls the pricing. Direct sales improve transparency in the buying process while saving automakers considerable costs. In theory, it’s a win-win-win: BMW reduces expenses, customers enjoy clear and consistent pricing, and retail partners still earn money on every transaction.
Few may remember, but BMW is no stranger to the agency model. It was among the early adopters in the first half of the 2010s with the launches of the i3 and i8. Fast forward to 2020, South Africa became a pilot market for a digital sales platform, helping the company prepare for wider adoption of direct sales in Europe. As for the United States, it’s not going to happen. The legal obstacles are simply too great. Many states expressly ban direct sales, making the agency model unfeasible in North America.
Explaining the European delay, a BMW spokesperson told Automotive News Europe in an e-mail:
“We have been revising the ramp-up and go-to-market sequence for BMW, making minor adjustments to the overall timeline to ensure both rapid implementation and a benchmark level of operational excellence. The exact timeline for rollout in individual markets will be announced at a later date, as planned.”
Source: Automotive News Europe
