Dealers to be thinned out - Aprilia
I hear all is not well with world in BMW-land. They are conducting a 'review' of dealerships early next year and apparantly dealers will have to re-apply for their franchise; around 5% are expected to be unsuccessful.. :-0

Things are not what they used to be it seems and profitability at some of glass palaces is not too good. I noticed that they've slipped into pre-reg'ing and some of the cars are pretty mediocre (1-series and X3 for example).
BMW dealers to be thinned out - rtj70
Sounds like they are doing similar to Mercedes Benz a few years back then...
BMW dealers to be thinned out - Pugugly {P}
One of the three I use has merged with with another, the other has a very good reputation for bike stuff. Hope they survive the cull.
BMW dealers to be thinned out - Avant
Part of the problem for BMW is that although they remain excellent cars, the opposition are catching up. The ones at the top of the range, like PU's 535D, I would think are still worth it if you can afford them.

But the 320D Touring, which I thought very seriously about, is (list price) £26,465 (SE) or £25,435 (ES) against the £17,862 of my new Golf 2.0TDI estate, equipment on the SE-trim Golf being somewhere between BMW's ES and SE.

We will get a scornful comment in a moment from Michael R that you can't compare a BMW with a 'white goods' Golf, but if you actually drive both I think you can. I'm sure there are bits you can't see where the BMW is better engineered than the VW, but as far as driveability goes, and the fit and finish that you can see, there really isn't much in it, and certainly not £7,000-8,000 worth. You couldn't have said the same about driveability with the Mark IV Golf (although you could about fit and finish) but the Mark V's ride, handling and response to the accelerator are huge improvements, and shall we say almost up to BMW standards.

I couldn't get a comfortable driving position in the 320 and I didn't like the gearchange - but that's subjective. Even if those points didn't apply I should have found it hard to justify the extra cost.

You might be surprised to think of VW and good valuie in the same sentence, but the Golf estate, unlike the hatch, offers SE trim with the 2.0 TDI engine. Inexplicably you can't have the Golf Match (=SE) with this engine and you have to go for the GT Sport (£18,887).
BMW dealers to be thinned out - Pugugly {P}
Well posted. Probably the most objective post about BMWs I've read on this site (Including mine !) I have to say that the feel of our family Golf is a little inferior in the cabin to my old E46. Can't compare it to the current 3 sufficiently well to comment. Whatever the Golf is or isn't it isn't "white goods" now that is an objective view.
BMW dealers to be thinned out - Aprilia
Believe me, talk to manufacturers and dealers and all cars are 'white goods' - they will try to convince the customer otherwise ('lifestyle', 'what the car says about you' and all that guff). BMW are well into volume territory now, pre-reg'ing and touting to brokers. There is 'convergence' in the car market - Audi putting pressure on BMW, Ford selling a Mondeo that does everything a BMW can do for a fair bit less money.
BMW dealers to be thinned out - Pugugly {P}
I accept that, but a car has to be something "special" for me to love it, I loved my E46, it has soul - it truly did, I I found it difficult to love its successors in the same way, I tried I honestly did. The Golf is another lovable car in the same sense. They may be white goods to people in the
"trade" but if they were to their drivers there wouldn't be dozens and dozens of related forums on here - I ask you are there forums on Washing Macines and Tumble Dryers...?

BMW dealers to be thinned out - Avant
Essentially, all cars are mass-produced apart from the low-volume specialists like Morgan and Caterham - and in that sense they can be called white goods.

But unlike things like washing machines this doesn't prevent some of them being different enough to have what PU rightly calls 'soul'. Soul is something that BMWs have been very strong in, and still are - but (and this is subjective) I find that my Golf has it too, in a way that its predecessor the B-class never had.

Who was it that said "by 2020 there will be only six car manufacturers left - plus Morgan" ?
BMW dealers to be thinned out - Pugugly {P}
Professor Garel Rees - Cardiff Business School. So far he's been right in his prophecies in the 80s
BMW dealers to be thinned out - Altea Ego
Professor Garel Rees - Cardiff Business School. So far he's been right in his prophecies
in the 80s


Just to save us wading through the sermons issued by this modern day nostrodamus, kindly precis the particular prophetic message in this context.

ta
------------------------------
< Ex RF, Ex TVM >
BMW dealers to be thinned out - Aprilia
But unlike things like washing machines this doesn't prevent some of them being different enough
to have what PU rightly calls 'soul'. Soul is something that BMWs have been very
strong in and still are - but (and this is subjective) I find that my
Golf has it too in a way that its predecessor the B-class never had.


Eki thump, you blokes are a marketing man's dream.

blasphemous comment substituted for another word (guess which one)
BMW dealers to be thinned out - mike hannon
A vehicle might be well-engineered enough to give a high and continuing level of customer satisfaction but it does NOT and CANNOT have 'soul'!
(Whatever that is - maybe we should ask the Archbishop of Canterbury although I doubt you'd get an understandable answer).

>Eki thump, you blokes are a marketing man's dream.<
Seconded.
BMW dealers to be thinned out - Avant
"maybe we should ask the Archbishop of Canterbury although I doubt you'd get an understandable answer)"

You probably would from the Archbishop of York. He might agree with you that 'soul' is the wrong word to use in this context, although I find it difficult to think of a better word to convey the difference between a machine that you can gain real enjoyment from using and one which you just use.

I expect that if I were a trained engineer like Aprilia I wouldn't see it in that light. But I would defend myself from being a 'marketing man's dream' !
BMW dealers to be thinned out - Number_Cruncher
>>I ask you are there forums on Washing Macines and Tumble Dryers...?

Yes, there are!, and jolly helpful they are too, when you need them!

Number_Cruncher
BMW dealers to be thinned out - Pugugly {P}
I knew that would happen !
BMW dealers to be thinned out - Altea Ego
I knew that would happen !


Not to mention Zanusi weekly, and Miele monthly on the top shelf at smiths.

My favourite tho is Bosch babes
------------------------------
< Ex RF, Ex TVM >
BMW dealers to be thinned out - Number_Cruncher
>>I knew that would happen !

Sorry PU!

Although it must be said, that there isn't quite the same level of "enthusiasm" on the threads describing how to change the bearing on a Hotpoint washer as there is on our threads about oil change intervals or tyre pressures!



Number_Cruncher
BMW dealers to be thinned out - J Bonington Jagworth
"jolly helpful they are too"

Especially www.washerhelp.co.uk/
(I've used him - he's good)
BMW dealers to be thinned out - Aprilia
They may be white goods
to people in the
"trade" but if they were to their drivers there wouldn't be dozens and dozens of
related forums on here - I ask you are there forums on Washing Macines and
Tumble Dryers...?


There are actually!

There's loads of forums (and magazines) for home entertainment equipment - do they have 'soul' too, and let's not get started on computers....
BMW dealers to be thinned out - Lud
let's not get started on computers....


Aprilia has cleverly raised the question of whether computers have souls. It seems unlikely. Indeed they may not even exist.

They don't think, therefore they aren't.
BMW dealers to be thinned out - JH
Lud
sorry I'm a bit behind times but I'm reminded of the Asimov story where the "world president" throws a switch to connect the last group of computers into the world network. He has the honour of asking the first question to the new world wide computer network (well I couldn't say "web" could I?); "is there a God?". A bolt of lightning fuses the switch closed and a voice says "There is now". :-)
JH
BMW dealers to be thinned out - J Bonington Jagworth
>'what the car says about you'

That's both a blessing and a curse for BMW. Remember the Audi ad? I'd still have a 2002, though...
BMW dealers to be thinned out - zm
Part of the problem for BMW is that although they remain excellent cars the opposition
are catching up. The ones at the top of the range like PU's 535D I
would think are still worth it if you can afford them.


I reckon you've hit the nail on the head. I am a staunch enthusiast of Mercs & BM's, but as a realist also I am the first to admit that the arguments in favour of some - not all by any means - of the smaller engined lower range premium models are now looking very weak indeed when compared with mid range examples of eg: Focus, Mondeo, Astra etc etc. However the higher up the BMW / Merc / Audi ranges you go, there is no way the products of the 'everyday' manufacturers can possibly compare imo.
BMW dealers to be thinned out - R40
Stratstones closed its Aylesbury BMW Dealership a month or so ago. It's become a 'Prestige' used car emporium. The Town now has no BMW Dealer, though plenty of owners. Tring or Milton Keynes are now iirc the nearest alternatives.
BMW dealers to be thinned out - MichaelR
I had the displeasure of an 07 116i for a week the other week and I have absolutely no idea why you chose one over an equivilently priced Ford Focus 2.0 Titanium.

It was reasonably well built, but that was about the only redeeming feature it had. It also looked awful, and I felt like everybody who looked at me driving it thought I was an extreme badge snob who'd suffer an awful car just to have the right keyring.
BMW dealers to be thinned out - jbif
I think Sales figures for BMW and VW make interesting reading. Sorry for the long post. I noticed that BMW claim UK to be their 3rd largest market and sales were up nearly 16% in the UK last month. VW also had strong growth. The UK is the 2nd largest market for the Golf.

BMWGroup.com
07.09.2007
BMW Group shows double-digit increase in August too
BMW Group shows double-digit increase in August too+++ Volume sales increase by 13% compared with the same month last year
Munich. The BMW Group is continuing to race ahead with its sales. In August, the number of BMW, MINI and Rolls-Royce automobiles delivered to customers rose by 12.9% to 99.755 (prev.yr.: 88,391). As in the previous months, all regions contributed to this positive development. The largest individual market in August remained the USA, with 30,638 automobiles sold (prev.yr.: 25,673). Here, the number of deliveries rose by 19.3%. This was followed by Germany with 19,253 vehicles sold (prev.yr.: 17,373) and a rise in sales of 10.8%. In the United Kingdom, the third-largest market, the BMW Group increased its sales in August by 15.8% to 6,672 automobiles (prev.yr.: 5,763).
Amongst the established markets, France recorded particularly strong growth rates. Here, 3,910 automobiles were delivered to customers in August, which is 78.7% more than in the same month last year (2,188). In the month under review, very high increases were also recorded by Poland, at plus 92.3% to 273 vehicles sold (prev.yr.: 142), and Russia, at plus 75.5% to 1,358 deliveries (prev.yr.: 774). In India, starting from a low level of sales last year (20), the company actually increased the number of sales more than five times over (+470.0%/114).
For the period from January to August inclusive, the BMW Group achieved an increase in sales of 7.1%. This meant that 952,929 (prev.yr.: 889.348) BMW Group automobiles were sold in the first eight months of the current year.
In the month under review BMW brand sales rose by 11.1% to 85,003 vehicles (prev.yr.: 76,497) in comparison with the same month last year. Up to and including August, 811,388 BMW automobiles were sold
(prev.yr.: 760,237/+6.7%).
MINI brand increases by 24%
In the face of continuing high demand for the new model generation, MINI brand dealers sold 24.0% more vehicles to customers in August (14,452) than in the same month last year (11,832). For the year to the end of August 2007, the number of MINI sold thus reached 141,082 units (prev.yr.: 128,711/+9.6%).
Rolls-Royce delivered 82 vehicles to customers in August (prev.yr.: 62/+32.3%). In the first eight months, 459 cars were delivered (prev.yr.: 400/+14.8%).
Dr. Michael Ganal, member of the Board of Management of BMW AG responsible for sales and marketing: "We are still in first place in the competition amongst suppliers of premium automobiles. We have undertaken to achieve sales growth in 2007 in the upper single-digit percentage range. We are well on the way to meeting this objective. From next week, at the International Motor Show in Frankfurt, we will be showing the products that are generating success? because, here and now, they represent just the right combination of performance and consumption.?
Sales of motorcycles in August 2007 reached 6,963 vehicles
(prev.yr.: 6,279/ +10.9%). Up to and including August, the number of
BMW motorcycles delivered rose by 5.2% to 75,114 (prev.yr.: 71,411).
BMW Group sales in/up to and including August 2007 at a glance
In August 07 comp. w. prev.yr. Up to & incl. August 07 comp.w. prev.yr.
BMW Group automobiles 99,755 + 12,9% 952,929 + 7,1%
BMW 85,003 + 11,1% 811,388 + 6,7%
MINI 14,670 + 24,0% 141,082 + 9,6%
Rolls-Royce 82 + 32,3% 459 +14,8%
BMW motorcycles 6,963 + 10,9% 75,114 + 5,2%

Volkswagenag.com
Wolfsburg, 2007-08-21
Volkswagen Group with 3.61 million car sales worldwide sets new record for January to July Increase of 8.1 percent
July record: with 522,000 vehicles 10.2 percent more deliveries
With 3.61 million vehicles sold worldwide between January and July 2007, the Volkswagen Group has set a new record for this delivery period. The increase in sales compared to last year was 8.1 percent. In July, 522,000 vehicles delivered was an increase of 10.2 percent, which was a record for the seventh month of the year. "There is a very impressive success which will further strengthen our presence on the world market. With our innovative brands and a broad and attractive model range which appeals to all target groups, we are on the right road towards selling over six million vehicles for the first time this year", said Professor Dr Martin Winterkorn, Chairman of the Board of Management at Volkswagen AG.
In Europe, the Group increased deliveries from January to July 2007 by 3.7 percent to 2.17 million vehicles, of which 1.89 million were in West Europe (an increase of 1.4 percent). In this way, the decrease of 3.3 percent in the biggest individual market ? Germany (607,000 deliveries) could be more than compensated. 279,000 vehicle sales in Central and East Europe resulted in an increase of 22.4 percent.
In the Asia-Pacific region, the Volkswagen Group delivered 591,000 vehicles which was 22.5 percent more than in the first seven months of last year. In China alone, the sales figures increased by 26.4 percent to 509,000 vehicles.
The American continent also displayed a positive trend for the Volkswagen Group. Deliveries to customers in South America increased by 28.7 percent to 403,000 vehicles, of which 310,000 were in Brazil (increase of 30.1 percent). In North America, 306,000 vehicles were sold ? an increase of 2.1 percent, of which 191,000 were in the USA (increase of 0.9 percent).
The Volkswagen brand, which is best-selling brand in the Volkswagen Group, delivered 2.11 million vehicles to customers worldwide between January and July of this year, 7.9 percent more than during the same period last year. Audi also achieved a clear plus of 9.7 percent with 590,000 vehicles sold. Skoda reported a strong increase of 13.3 percent to 362,000 deliveries. Seat sold 261,000 vehicles (minus 2.0 percent). Volkswagen Commercial Vehicles reported a considerable increase of 10.2 percent to 274,000 vehicles sold. The best ever sales result for the Group was rounded off by Bentley with 6,500 vehicles delivered (plus 23.0 percent) and Lamborghini with 1,400 (plus 24.0 percent). Bugatti more than doubled its sales with 47 deliveries.

Volkswagen.com
02/08/2007 I ModelsGolf sales increase worldwide
The Golf is Volkswagen?s best-selling model worldwide and sold more than 300,600 units during the first six months of this year, equating to a sales increase of ten percent against the first half-year of 2006. Some 61,500 units were sold in Germany alone, corresponding to a rise of 5.7 percent. The second-largest ?Golf country? is the United Kingdom, while the Golf?s biggest overseas market is the USA.

02/08/2007 I CompanyVolkswagen Group posts sales record
The Volkswagen Group sold more than three million vehicles worldwide during the first half of 2007. This equates to a rise of 7.8 percent against the same period of the previous year. Sales in Europe rose by 3.7 percent, while an increase of 22.8 percent was reported in Central and Eastern Europe. Meanwhile, sales in the Asia-Pacific region grew by 20.9 percent and in South America by as much as 27.7 percent. The highest-volume Group brand is Volkswagen.

BMW dealers to be thinned out - 659FBE
Any chance of a 10 line precis?

659.
BMW dealers to be thinned out - jbif
10 line precis? Will one or two[*] lines do?
[*] depending on when the width of this web page gets reset.

"Contrary to reports of the death of BMW and or VW, their sales are actually growing at a very healthy pace".

BMW dealers to be thinned out - Pugugly {P}
And remember BMW is a mostly privately owned company so making money is a requirement not a pleasant by-product.
BMW dealers to be thinned out - Aprilia
"Contrary to reports of the death of BMW and or VW their sales are actually
growing at a very healthy pace".


I don't think anyone is reporting the death of BMW - never seen that. More that whilst sales are doing well the dealers are struggling to make anything on their (considerable) investment in the brand. Its not so much a VM issue, more a dealer issue.
Volume is very much a double-edged sword.
BMW dealers to be thinned out - Mapmaker
I ask you are there forums on Washing Macines and Tumble Dryers...?


That's not really the correct question to be asking. This is a motoring forum, not particularly a car forum.

There are forums on washing machines and tumble driers, and they are somewhat dry, much as our technical forum is (or would be if the site didn't have a motoring discussion forum which drives additional traffic here).

You should be asking whether there are forums on washing and drying clothes. I have no doubt that if you go onto mumsnet that they get just as worked up over washing at 60 or 50 degrees as some people do here about changing the cambelt every morning before going to work.

Nur nur nur nur nur!!!
BMW dealers to be thinned out - LHM
But no doubt there are still passionate Miele vs Beko debates :-(
BMW dealers to be thinned out - Paul I
"Contrary to reports of the death of BMW and or VW their sales are actually growing at a very healthy pace".

Remember profit is sanity and turnover is vanity !!

Selling more cars means only one thing BMW will have to sell even more cars next year and the year after; problem for the private motorist is residuals take a dive and your 3 series just becomes another Mondeo ... no disrespect to the Mondeo which is a good car.

BMW dealers to be thinned out - boxsterboy
Remember profit is sanity and turnover is vanity !!


Exactly. PSA's new chief (parachuted in from Airbus) has said that they will o longer chase volume but concentrate on profitability. Not sure I believe any of them, really, and how do you pay a salesman if not on volume sold?
BMW dealers to be thinned out - jbif
Hello boxterboy and Paul I

I think you missed the word "healthy" in my sentence.

BMW dealers to be thinned out - MVP
I think commoditization is the word.

Most "products" are now such high quality, that branding is often the main differentiator in price.

As consumers get maturer, they start to realise that the £2 Primark T-shirt isn't that different a quality to the £40 designer one, and there becomes an almost inverse snobbery to not getting ripped-off for a badge.

A Russian friend of mine laments the day he purchased his Merc (always dreamn't of owning a Merc when in the Motherland), realising now his trusty old Toyota was a better car, with helpfull dealers who didn't try to rip him off.

Is this starting to happen the BMW?

MVP
BMW dealers to be thinned out - rogue-trooper
Not sure if that is beginning to happen to BMW or not but as an owner for the past 12 years it might be.

The reason that I bought my current 5 series estate was that there were only 3 cars that fitted the bill. Rear wheel drive, 6yl diesel, newish, big/biggish interior. It was either the 5, Merc E class or Vauxhall Omega.

Now I am not so sure how important RWD is to me, although I prefer it (or think that I do) and as I mentioned in a previous post, 4cyl diesels have now got much more output than they did 5 or 6 years ago, so is a 6 cyl worth it?

The other reason I paid a lot on the car is so that it would last a long time. As image is unimportant, the badge is irrelevant, I am more than happy driving a 7 year old car and don't see reason to change. However it is has not worked out that the car is more reliable than any other.

Now the car is out of warranty (for some reason BMW obviously aren't confident enough of their product to offer a 7 year warranty like Kia) I now no longer have any reason to stay within the dealer network. Why should I, when the experience that I have had is no better than my local german car specialist (BM, VAG, MB) but 20-40% more expensive. Are BMW closing dealers selling new cars or their service departments? I suspect that it could be the latter due to the astronomical service costs. Simple market forces at work there.

Will I replace my car with another BMW (probably in 3 years time). Likely answer is no - not because I can't afford it, more that I don't see the point in spending so much for something not a huge amount better. I agree that PU's 535d would be hard to replace like for like but a 530d has some alternatives, and I am looking forward to VAG launching their common rail engines as I would like to stay a DERV driver with about 200bhp.
BMW dealers to be thinned out - nb857
arn't BMW's a bit err, common?

I'm sure they drive lovely, but it comes at a price does it not?

People would wear a car like a 3 Series, what does a 3 Series say about you, particularly a 4cylinder model? "I'm doing ok, this is a nice company car, but I'm still not the boss yet". When they get old they really attract a particular "demographic". Only yesterday I saw a tattoed gentleman driving around a council estate slurping on a fast food joint drink in an aging 5 Series. Not that I am making any judgements on what he might do for a living...

My manager had a T reg 3 Series from new and to be honest, if I had a £1,500 banger that was as unreliable as that pile of junk I would have scrapped it. He got another one last year. They really must drive will.

BMW dealers to be thinned out - Roly93
But the 320D Touring which I thought very seriously about is (list price) £26 465
(SE) or £25 435 (ES) against the £17 862 of my new Golf 2.0TDI estate
equipment on the SE-trim Golf being somewhere between BMW's ES and SE.

Good point, in fact I couldn't see why the 3 series touring was over £2K more than the directly equivalent A4 Avant. Plus the fact that BMW have hacked everyone off with their stupid run-flat tyres.
Dealers to be thinned out - henry k
Things are not what they used to be it seems and profitability at some of
glass palaces is not too good.

>>A glass palace has just been built on an existing BMW site in Cobham, Surrey but I guess there is so much money in the area they should recoup it OK.
Dealers to be thinned out - jbif
Honestjohn said above " I think Aprilia's point is very well made. Profit is the margin on a car. " and
"Very simplistically, that isn't enough to fund his glass palace, even after charging £150 an hour labour in the workshops.
The reason why BMW was profitable and Ford wasn't is that BMW could sustain high dealer margins on its cars. As soon as it gets into big volumes and big volume discounts fat profits disappear."

Honestjon and Aprilia's comment, as well as boxterboy and others who made that same point, that is true. The title of this thread is that BMW are to thin out their dealers because Aprilia says that "I hear all is not well with world in BMW-land". In the O.P., Aprilia then says other things based on his own observation at BMW dealerships that maybe he visits locally or nationwide. All this may or may not be happening in the UK as there are no other reports of BMW plans to thin dealers that I have seen anywhere else.

In my long post above I quoted the BMW sales figures only because the post was long enough as it was. As it seems that people also want to know about profits, here is the profits information
bmwgroup.com/e/nav/index.html?../0_0_www_bmwgroup_com/home/home.html&s
ource=overview


"BMW Group confirms targets.
The BMW Group forecasts a continuation of its successful course in the second half of 2007.

Sales volume figures for the Automobiles segment in the six-month period are in line with BMW Group's forecasts. After the moderate growth rate seen in the first months of the year, sales volumes rapidly gained pace towards the end of the second quarter. This trend will also continue in the second half of the year. The forecast for the full year is a sales volume growth in the high single-digit percentage range, resulting in new all-time high sales volume figures for all three brands.

External factors, such as adverse exchange rates and higher raw material costs, will continue to have a negative impact on the BMW Group's earnings in the second half of 2007, particularly in relation to the Automobiles segment. Given the faster sales volume growth rates, the BMW Group nevertheless forecasts higher pre-tax earnings for the Automobiles segment than in the previous year.

The exchangeable bond option on the BMW Group's investment in Rolls-Royce plc, London, was largely settled in 2006, and there will be no comparable impact on earnings in 2007.

Stable growth in the operating segments as well as continuous efficiency and productivity improvements will continue to have a positive effect on group earnings in the second half of the year. Adverse exchange rate factors, higher raw material costs and less favourable refinancing conditions as a result of higher interest rates still remain the main challenges to be overcome as far as future earnings are concerned. In particular, the continuing weakness of the US dollar and the Japanese yen has had a more negative impact on earnings than expected. Despite these additional negative factors, the BMW Group maintains its business forecasts for the year and expects each of the segments to continue performing well in the second half of the year. Excluding the exceptional gain on the Rolls-Royce exchangeable bond, the BMW Group aims to achieve higher pre-tax group earnings in 2007 than in the previous year. Sales volume growth and the continuous implementation of efficiency improvements will play a significant role in achieving this aim.

The BMW Group intends to continue its growth course in the coming years and will continue to generate above-average returns for the sector. "

The last sentence is important. Far from diluting its profits, BMW is aiming to continue its growth and to generate above-average returns.

Dealers to be thinned out - Bill Payer
A fairly crucial point (to the dealers) is that BMW's profit isn't the same as dealership profitability!

In fact it's even more galling for the dealers who are making less and less money to see BMW's profits growing.
Dealers to be thinned out - boxsterboy
If BMW cut out brokers, they will sell fewer cars. If they make x% profit on each car, they will therefore make less profits, and fewer sales means the factories will be working less efficiently, unless fundamental changes are made to the financial structures.

Eventually with fewer BMWs in circulation, supply and demand in the used market might help their residuals. But they will always be compared against their competitors here, and if you could get a comparable used Merc or Audi for, say £15,000. The similar BMW will have to be priced similarly.

It's called the market. And you can't buck it.
Dealers to be thinned out - jbif
"If BMW cut out brokers, they will sell fewer cars"

Assuming Aprilia's insider knowledge of BMW plans to thin out dealers is true, then maybe the intention could be to make their glass palaces and the BMW brand more exclusive and increase the margins to their richer clientale. But then BMW have made no such announcements.
However, official BMW policy and results to date show that they are maintaining both sales growth and maintaining their returns despite the adverse effects ot the weak dollar.

So all inall, IMHO, so far this is a "inside knowledge" based thread without substance.

Dealers to be thinned out - rjr
So all inall IMHO so far this is a "inside knowledge" based thread without substance.



BMW boss Jim O'Donnell made the comment about the dealer restructure in an article in the Mail.

You can read it here:

www.redorbit.com/news/display/?id=1059730
Dealers to be thinned out - jbif
Thank you rjr.

Now it all makes better sense, based on official statements. About 1 in 20 dealers to be axed if they don't perform and give better customer service.

Dealers to be thinned out - rjr
About 1 in 20 dealers to be axed if they don't perform and give better customer service.


That is Jim O'Donnell's take on it but an alternative view is that 1 in 20 BMW dealers will not reapply (or not put a great deal of effort into reapplying) as they no longer feel that having a BMW dealership is worth it.

The BMW dealers will have to build new dealerships or redevelop their existing ones to meet the new standards that BMW demand. As property prices are so high this could cost as much as £10 million. A very large amount of money to invest when they are currently struggling to make money due to oversupply of cars.
Dealers to be thinned out - Aprilia
I had not seen the Daily Mail article (I don't read it!). My information came from a guy I know who works at a local BMW dealers. The way it was put to the dealers (according to my contact) was a bit different to how it was explained in the Mail article! - but I guess the outcome will be the same. Also in 2006-07 BMW (UK) set over-optimistic sales targets which led to dealers pre-reg'ing under pressure from BMW, to make any profit. Seems a bit harsh that some of these dealers will now suffer.

The problem for a lot of dealers, not just BMW, is that dealers are setting very high 'dealer standard' requiring massive investment that is taking years to recoup. Its said that a new Lexus dealership needs 15 years to reach payback.....
Profitability for the manufacturer and for the dealer are not necessarily related. The manufacturer will, in general, have scant regard for dealer profitability. And dealers can go bust even when charging apparantly high prices for cars. E.g. as I've written before, the UK prices for Subaru cars (just to take one example) are 25-30% above world prices (which allows for a flourishing trade in EU import Subaru's.....). Yet even by charging c. £5k above 'world prices' quite a number of UK Subaru dealers have gone bust in the last year of two. Where is that money going? Its not going into dealer profits, its going into showroom expenditure and UK official import agent's pockets.
Dealers to be thinned out - Xileno {P}
The whole model is twisted in the UK. It's only a matter of time (maybe not too long either) before it collapses. A payback period of 15 years is ridiculous - I am amazed any Bank would lend them the money. Maybe after the recent financial turmoil in the money markets they won't...

When I go to a main dealer in France the place is much more modest. No silly plants and coffee machines, no chrome etc. Just a respectable place with mechanics who know what they're doing.

A friend of mine was a mechanic at a main dealer. They forced the dealers to upgrade the showrooms etc to be aligned to the 'Corporate image'. This is was going to cost a fortune. So they broke away from the franchise, put two fingers up at the manufacturer and became an independent specialist. The last thing I heard was they were doing very well. Maybe more frustrated main dealers should do the same...
Dealers to be thinned out - Aprilia
The answer, of course, is to treat the sale of cars like the sale of any other product. But the captains of these 'free market' corporations (and their shareholders) don't like this idea and so spend vast amounts of money trying to persuade everybody that the current business model works for the consumer.....
Dealers to be thinned out - nortones2
The relationship between UK prices, and other markets continues to be a puzzle. Toyota sell the Prius in USA for about half the UK price $23,220 is the recommended price for the higher spec, plus $660 delivery. I suspect as Aprilia says, that the dealers still get a small margin, and the rest disappears into the makers coffers.
Dealers to be thinned out - Xileno {P}
The UK wasn't dubbed Treasure Island for nothing...
Dealers to be thinned out - Pendlebury
>>The answer, of course, is to treat the sale of cars like the sale of any other product.<<

I agree - at the end of the day cars are not different to white goods.
Dealers to be thinned out - 659FBE
And also, perhaps to provide products of lasting value (possibly they already manage this) and to provide the customer with back up which is good value (definite failure here).

Most businesses which survive meet these requirements.

659.