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Independent BMW car dealers loath to agree new terms: Sueddeutsche Zeitung

Posted by: Admin | Posted on: September 26th, 2018 | 0 Comments

FRANKFURT (Reuters) – Most of BMW’s (BMWG.DE) 550 independent car dealerships are unwilling to accept new terms set by the carmaker and are threatening to ignore an end-September deadline, Sueddeutsche Zeitung reported on Wednesday.

The move could affect the sale of BMW cars and spare parts from next Monday, the Munich daily said.

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

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

The dealers account for 11 billion euros ($12.94 billion) of BMW revenues, the paper said, adding BMW only owns 50 of the 600 BMW car dealerships. The retailers received new terms in August that leave them with significantly less income.

BMW on Tuesday warned its pretax profit would fall this year, against earlier expectations for a flat outcome, and cut its profit margin guidance for cars, blaming intense price competition following new emissions rules.

($1 = 0.8499 euros)

Reporting by Christoph Steitz; Editing by Mark Heinrich

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/mJA3NM4Sao4/independent-bmw-car-dealers-loath-to-agree-new-terms-sueddeutsche-zeitung-idUSKCN1M52ZJ

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