Independent BMW car dealers not agreeing to new terms

Majority of BMW’s 550 independent car dealerships are not willing to agree with new terms set by the automaker and are threatening to overlook an end-September deadline, Sueddeutsche Zeitung reported.

The move could impact the sale of BMW vehicles and spare parts from next Monday, the Munich daily stated.

“We are not going to sign the contracts that have been offered to us with regard to a business model 2018+ in their present form,” stated Peter Reisacher, president of the association of German licensed BMW dealers (VDB).

“We will inform BMW on Wednesday in written form.”

The dealers represent 11 billion euros ($12.94 billion) of BMW revenues, the paper noted, adding BMW only owns 50 of the 600 BMW auto dealerships. The retailers got new terms in August that leave them with largely less income.

BMW on Tuesday cautioned its pretax profit would decline this year, against previous expectations for a flat outcome, and slash its profit margin guidance for vehicles, putting blame on intense price competition following new emissions regulations.