According to media reports, BMW plans to transition its core brand to an agency sales model starting from 2026. The company has remained silent on when exactly this transition will take place.
Dealer reports indicate that Germany will be one of the first countries where BMW adopts the new sales system from January 2026. BMW has refrained from commenting on specific dates.
Earlier, BMW's sub-brand MINI had already completed the transformation of its sales approach. As of January 1st this year, MINI sales in Italy, Poland, and Sweden have shifted to the agency model. A BMW spokesperson stated that MINI's transition has had a good start.
However, in the domestic German market, the transition of MINI's sales model has been delayed by 6 months, with the current new date set for October 1, 2024, due to information technology issues, as reported by dealers.
The transformation of BMW's sales model will be led by Christian Ach, who will take over as Head of BMW Germany Market on March 1st, succeeding Christian Teuchert. From 2018 to 2021, Ach served as BMW Germany Sales Director.
So far, dealers have expressed satisfaction with the new contracts offered by BMW. One BMW dealer, when discussing the current MINI sales contract, stated, "The contract is very fair and can be worked with."
BMW offers a commission rate of 7.4%, with 5.5% being fixed commission, setting a benchmark in the industry. In comparison, Stellantis dealers receive a fixed commission of 4%, with a floating commission of 1%.
Among major competitors, Mercedes-Benz offers a maximum commission rate of 6.5%, while Audi provides a fixed commission of 6% and a floating commission of 2.5%. Additionally, selling electric vehicles earns an extra 1.5% floating commission for Audi. However, Audi does not adopt a pure agency model.
BMW will directly invoice customers, and dealers will charge fixed sales fees. BMW states that this sales model ensures nationwide uniform pricing for the same model, thereby enhancing price transparency.
