BMW and Mini considering agency model switch in Europe, Australia to remain unchanged

A switch to an agency sales model is on the cards for BMW and Mini, per international reports.

According to Automotive News Europe, BMW and its subsidiary Mini are considering a move away from the traditional sales model of dealerships being run as franchises, instead following in the footsteps of Mercedes-Benz by implementing direct sales.

By doing so, the manufacturer takes ownership of the dealership and its inventory, with an implementation of fixed prices across the network now becoming commonplace, as we've seen in Australia with both Honda and Mercedes-Benz within the past 12 months.

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BMW Group's sales and marketing boss, Pieter Nota, told ANE the manufacturer is currently liasing with its European dealer network to implement the model, having first trialled it at the launch of the 'i' electric vehicle sub-brand in 2013.

"We are currently talking with our European dealers about a move to a genuine agency model," said Nota.

“If we will move to the agency model, this time it will be for the entire range.”

Reports from Autohaus magazine earlier this year stated the BMW Group's authorised dealer system would be moved aside in favour of the agency model from 2024, first for the lower-volume Mini brand and followed by BMW in 2026.

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BMW's Australian operations will remain unchanged

The Australian arm of the BMW Group has told WhichCar it has no such plans to introduce an agency model locally, saying it is sticking with its current sales setup for the immediate future.

"Together with our dealer partners, BMW Group always strives to offer its customers the best premium experience," said a BMW spokesperson.

"With customer expectations changing, digitalisation increasing and the online sale of vehicles expanding, BMW Group sees the future of Europe as a direct sales model.

"This is currently being developed together with dealer partners who will continue to be the backbone of our company’s sales success.

"The focus is on Europe and there are no current plans to change the existing sales model in Australia."

Mercedes-Benz is understood to be the biggest mainstream manufacturer investing in the agency model, with the German carmaker planning to cut around 10 per cent of its worldwide dealerships in the coming years, while expecting 80 per cent of sales to come from direct sales by 2025.