BMW to Initiate Direct Sales in Europe Commencing from 2027
BMW has announced adjustments to the timeline for the rollout of its agency model in Europe. The automaker, which has been testing the model since 2020 in South Africa and began implementing it for MINI in several European countries last year, will now delay the full-scale adoption until 2027.
The decision to postpone the implementation was made to ensure both rapid implementation and a benchmark level of operational excellence, according to BMW board member Jochen Goller. The exact timeline for the rollout in individual European markets will be announced at a later date.
Under the agency model, customers will enjoy clear and consistent pricing across each country, with haggling disappearing as the automaker controls the pricing. Retail partners will still earn money on every transaction under the agency model, but with fixed commissions instead of the current variable structure.
The agency model is expected to save BMW considerable costs and improve transparency in the buying process, making it a more direct and streamlined experience for customers. Direct sales under the agency model have been successful in pilot markets, with the introduction of MINI's agency model last year being particularly encouraging.
However, the agency model will not be implemented in the United States due to legal obstacles, as many states expressly ban direct sales. BMW tested the agency model in the first half of the 2010s with the launches of the i3 and i8, but it was not feasible in North America at that time.
BMW plans to introduce the agency model in every individual European market with the launch of the new Neue Klasse starting in 2025, beginning with the BMW iX3 as the first model of this new vehicle generation entering series production this year. The spokesperson for BMW stated that they are revising the ramp-up and go-to-market sequence for the agency model in Europe.
The news of BMW's revised timeline for the agency model rollout in Europe was reported by Automotive News Europe. Goller expressed confidence in the shift to the agency model, stating that it will bring a more customer-centric approach to sales and a more efficient business model for BMW and its retail partners.
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