As Mercedes-Benz prepares to commit further towards ‘agency model’ sales around the world, it’s been confirmed that BMW is weighing up following the three-pointed star’s lead.
Speaking to Automotive News Europe, BMW Group sales and marketing boss Pieter Nota said that both BMW and Mini should shift to the model, with discussions between the brand and its European dealers already in full swing.
“We are currently talking with our European dealers about a move to a genuine agency model,” Nota said.
It’s unknown when the move will come to action, although it’s been previously speculated that Mini’s authorised dealer system in Europe may be replaced by 2024, and BMW’s by 2026. Rolls-Royce is said to be exempt from the potential changes.
This process of rollout could make Mini a functional test bed for the change in sales model, giving BMW added reassurance before implementing similar changes to its main brand.
Agency model sales often see brands sell vehicles themselves, subsequently reducing the role dealers play and simultaneously reducing the amount of commission they earn on each vehicle sold.
Conversely, the brand soaks up the cost of inventory and promotions; costs previously paid by dealers. In theory, the exchange of onus means profits even out for both halves of the interplay.
The news comes after Mercedes-Benz reiterated its position on agency model sales. As reported yesterday, the brand is set to reduce the amount of dealerships it has in Germany by 20% over the next six years, and 10% globally over the next three years.
It added that it expects 80% of its sales to come via its agency model by 2025.
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