Mini, BMW Skips U.S. to Offer Direct-to-Customer Sales By 2024
(CTN NEWS) – Direct sales plans are only for the rest of the world, so BMW could have pressured dealers to stop insane “market adjustments.”
In its third-quarter global business update, BMW announced its plans to launch a direct sales model in multiple global markets by 2024.
Customers can order directly from BMW, Mini, and Rolls Royce, similar to what Tesla, Rivian, and other new and start-up brands are already offering. One tiny catch: it’s not happening in the United States. Not yet, at least.
In 2024, BMW plans to launch a direct sales model, starting with Mini, which it owns, and then the company itself by 2026.
According to the report, Dr. Nicolas Peter, a Member of the Board of Management at BMW for finances, said, “We want customers to be able to order directly from us.”
BMW is reportedly in “constructive talks” with its dealer network, but no further details are provided about this.
As a result of contract laws and other local regulations surrounding new vehicle sales and dealer group requirements, separating from dealership franchises is difficult here in the U.S.
Rivian and Tesla have infamously faced such issues since their inception, and it is one of the issues that confound new automakers who also want to enter the market directly.
BMW North American customers will not be able to purchase directly from the company itself.
A company spokesperson told MotorTrend in an email: “News reports arising from the BMW Group Q3 global business update in Munich discussed a planned change in the retail sales model in Europe and other markets outside of the U.S.
This change only affects European and other markets outside the U.S. and does not impact our business model or operations here in the U.S.”
The threat of major players like BMW adopting a direct sales model in the U.S. would have helped leverage against these insane recent dealer “market adjustments” that sometimes triple the price of a new car.
Franchise dealers and their unfair markups will continue to be a major problem until more major OEMs step up and put real teeth into their warnings about such practices.
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