February 5, 2023

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How BMW will revamp its retail network for digital age

Exactly where do you see the most important issues at the start out of the agency product?

When we launch at Mini on Jan. 1, 2024, Mini will be wholly all set. Mini is not a guinea pig for everything that we could then do far better at BMW two yrs later. All things viewed as, we are now pretty considerably alongside in phrases of IT progress and the new buildings. From our place of check out, nonetheless, it continue to tends to make much more perception to commence with Mini and then convert the BMW manufacturer. That’s why we’re getting our time, so that we can then go into the commence-up stage in phases.

Will all nations begin at the exact same time on Jan. 1, 2024?

There will be 3 waves. Germany’s flip will arrive in the to start with 50 % of the year. I can not say now how factors will be at BMW in 2026.

Would the agency also be conceivable for the U.S. in the long run?

No, surely not. That would not be suitable with the basic disorders in the U.S.

Your competitor Audi, like other models in the Volkswagen Team, initially will only offer its electrical automobiles with an agency product. Why are you performing factors differently?

I think it is very significant to only introduce an company product with the overall motor vehicle portfolio. Anything else will not do the job in my check out, because you then commence competing within your own product variety.

What do you necessarily mean?

If we introduce an agency design for our electric motor vehicles only and a consumer will come to just one of our dealerships simply because he/she would like to purchase an i4, then beneath this sort of an technique it could materialize that he/she leaves the dealership with a 4-collection coupe. What I am stating is that we do not want our clients to be pushed in any way at the dealership just because the dealership has an additional car in stock. That is why I assume these kinds of a move is basically wrong. There will be no these separation with us.

Is this a lesson discovered from the agency model for your electrified cars that you launched in 2013 and dropped by 2018?

The product worked perfectly in alone for the i3 and i8. In fact, the explanation we folded it back in in any case was because of the competitors with the conventional profits program. At BMW, the client and his or her needs are in the foreground, not what the dealer currently has on provide. The changeover now affects the full manufacturer. That is diverse. And that is why it will do the job.

Stellantis CEO Carlos Tavares wants to reduce distribution prices at his brand names by 40 per cent by 2030. Do you also see likely price savings in the company design?

For us, the company model is not a cost-cutting method. Of system, new efficiencies will outcome from a a lot more data-driven management of our profits. We will be joyful to take that on board. But we are taking this move to make improvements to the shopper practical experience and the model working experience. In the long run, the purchaser will get the very same offer and the similar charges all over the place. That is very significant for us as a high quality brand. We do not want the shopper to feel that they are remaining quoted a unique rate all over the place.

But offering the identical selling prices everywhere can also be a threat. For example, a car or truck that is promoting well in an location these as Tegernsee in southern Germany can result in desire to collapse in other locations of the region if shops have no scope for bargains. Would you settle for a loss of product sales below?

No, totally not. We have a quite distinct expansion tactic at BMW, and we are also attaining market share around the world. In 2021, BMW was when again No. 1 in the worldwide premium segment, and we want to keep on being in that spot. There are even now alternatives to react with selling prices, even in the company design. Just most likely not as locally as is presently the scenario. Even the pricing now may possibly definitely not be best everywhere you go, but in the new product there will at minimum be uniform charges.

But then you might eliminate a purchaser to Mercedes or Audi simply because of 500 euros…

I do not see that taking place. We generally have strategies of reacting, for example as a result of our young made use of cars. There are prospects that we have now and will continue to have.