Significant changes are underway for BMW in Europe. Following Mini's successful transition to a direct-to-consumer agency model, the BMW brand will follow suit, changing how it sells vehicles across the continent. The German automaker says this shift will streamline operations, cut costs, and ultimately enhance the customer buying experience.
BMW initially planned to switch to the direct sales model by early 2026, but that timeline has been pushed back by one year. The brand remains committed to implementing this model, with specific timelines for each market to be confirmed later. Mini spearheaded the change in 2024, launching in Italy, Poland, and Sweden before expanding to 20 other markets.
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The BMW XM starts at 133,800 euros (approximately 157,000 USD) in Germany. Photo: BMW |
The BMW XM starts at 133,800 euros (approximately 157,000 USD) in Germany. Photo: BMW
Jochen Goller, BMW Group’s board member for customer, brand, and sales, told Auto News that feedback on the new model has been "very positive."
"Frankly speaking, we are even more convinced than before that this is the right approach," he said. "The entire end-to-end sales process is working well, from lead generation to handover, and the feedback has been very positive."
Under the new direct sales model, dealerships will no longer hold inventory or negotiate prices. Instead, they will act as intermediary agents, while the automaker maintains inventory and finances marketing and sales campaigns. Dealers will then receive a portion of the sales revenue through a fixed fee.
Industry estimates suggest this approach could cut distribution costs by 10% or more, giving brands a direct line to customers throughout the buying process and tighter control over pricing, which was previously diluted by dealer negotiations.
Some other automakers have also announced direct sales models, but most have shelved the idea. Recently, Volkswagen in Ireland stated it was no longer pursuing direct online sales to consumers for its brands. After announcing plans to transition to a direct-to-consumer agency model starting in 2026, the decision was reversed last July. The company will continue with the traditional franchise dealer model for selling cars in Ireland.
BMW has not yet announced a firm date for the transition. In a statement regarding the delay, a BMW representative said the company "reviewed the rollout sequence and go-to-market approach, making some minor adjustments to the overall timeline to ensure a swift rollout and achieve operational excellence."
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