The BMW Group is set to introduce a significant change in its sales model by transitioning to a direct sales approach for the MINI brand starting October 1, 2024. This move follows the initial implementation in Italy, Poland, and Sweden, which began on January 1, 2024. The new sales model, known as the agency model, will later expand to other European markets and eventually include the BMW brand by 2026.
Enhanced Buying Experience with Physical and Digital Options
Under this model, BMW will own the entire stock of cars, and appointed retail partners will act as intermediaries, facilitating sales without being the contractual partners for customers. This change aims to provide customers with price transparency through uniform nationwide pricing for each MINI model, and to enhance the buying experience by offering both physical and digital purchasing options. Customers will be able to seamlessly switch between these options, supported by an integrated IT system that ensures a smooth transition between online and in-dealership experiences.
The BMW Group has highlighted the benefits of this model for all parties involved. For customers, it offers clear and consistent pricing and a more flexible purchasing process. For retail partners, it simplifies planning and allows them to focus on customer consultations and care, earning a fixed commission for each vehicle sold.
Jochen Goller, a member of the BMW AG board, emphasized that this transition is a central milestone in the company’s sales realignment. The new model aims to strengthen customer satisfaction and the overall brand experience. Christian Ach, Head of BMW Group Market Germany, also noted that the existing MINI dealer organization will remain integral to the new sales approach, ensuring strong customer support and continuity.
According to BMW, the implementation of this model has been well-received in the initial markets, with significant preparations including extensive testing and employee training to ensure a smooth transition. The Association of German BMW Dealers (VDB) has also been a constructive partner in developing the new system, contributing ideas and working towards solutions for any outstanding issues.
Inclusion of BMW Brand by 2026
The first phase in Italy, Poland, and Sweden has already allowed customers to pre-order new MINI models entirely online, marking a significant step forward in digitalizing the car buying process. With this important development of the sales model, from October 1, 2024, all new MINI vehicles and young used cars will be sold in the true agency model. For the BMW brand, the transition is planned from 2026. BMW of North America stated in the past that this direct-to-consumer approach will not be implemented in the United States.