Dealers Oppose BMW’s Decision to Sell i3 Over Internet and Through Mobile Sales Force in Germany

JUL 23 2013 BY ERIC LOVEDAY 5

BMW i3 Will be Made Available to Purchase Over the Internet

BMW i3 Will be Made Available to Purchase Over the Internet

BMW’s Tesla-like sales approach for its upcoming i3 is under scrutiny by dealers in Germany.

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With the i3, BMW intends to turn to the Internet to up sales of this unconventional Bimmer.  BMW further says that its Mobile Sales Force may make “house calls” to see the i3 to potential buyers.

This direct-sales approach is coming under fire now as German dealers gear up to do battle.

But it’s not only the i3 that BMW is looking to sell in a different sort of way.  BMW’s German sales boss, Roland Krueger,  reportedly told WirtschaftsWoche magazine this:

“We can well imagine that Internet sales could be expanded to all models.”

Of course, dealers won’t stand behind that.  Krueger did say that dealers will always be the “backbone” of BMW’s Germans sales model, but that did little to quiet the roar.

BMW’s head of German dealerships, Werner Entenmann, told WirtschaftsWoche magazine this:

“We told BMW in no uncertain terms that we cannot accept direct sales channels.”

At least one anonymous dealership already vowed to not make use of BMW’s Mobile Sales Force.

We see this battle getting much worse before it hopefully cools off.

Source: Automotive News Europe

Categories: BMW

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5 Comments on "Dealers Oppose BMW’s Decision to Sell i3 Over Internet and Through Mobile Sales Force in Germany"

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Hey BMW, welcome to Tesla’s world.

Whole lot of unknowns.

Are internet sales directed through the local dealer? If the sold vehicle is picked up at the local dealer and the dealer gets a cut, then they should not complain.

Service must still be at the local dealer, and if there is any warranty work on this new car then where else would the new owner take it? I cannot imagine a system that leaves the dealer out of the loop.

Is the dealer pissed off because they didn’t get the chance to up-sale with dealer installed options?

These people already have a car dealership network with several of them quite large I don’t see why they can’t sell it at their dealerships in that they already have a giant dealership network they can use.

Because they have a staff of well trained individuals who know ICE technology inside and out. They feel that PBEV’s are a threat to their knowledge base. And that when a customer walks in to their dealership, they’ll lose precious time guiding the customer away from the EV and on to their breaks and butter vehicles.

Basically this is also Elon Musk’s argument as well.

Dealers are not an enemy, they are there to represent a brand, foster sales and provide service, but they must be placed in competition with one another to avoid too high margins.
Builders must also increase their own margins on the standard cars and reduce them on the electric ones to turn around the tendency of the dealers to push forward their own higher margin models in the way that it becomes more dealer profitable to sell an electric then to sell a standard car.
In this margin settings calculations the builders must account for the tendency of the dealers to profit from service and thus reduce even more the dealers left margin on a standard car sale.