BMW UK has announced a revision to its transition plan for adopting the agency model in new car sales. According to Broker News, the company will be refining its rollout strategy and making slight adjustments to the timeline, drawing on insights gained from MINI’s ongoing adoption of the model across various European markets.
A BMW spokesperson confirmed the shift, stating, “We are currently refining the rollout plan for BMW with slight adjustments to the timeline. The focus remains on ensuring operational excellence and integrating key learnings from the MINI transition to optimize processes across all sales channels.”
The agency model represents a significant departure from the traditional dealership model, in which independent retailers purchase vehicles from manufacturers and set their own prices. Under the agency model, manufacturers sell cars directly to customers at a fixed price, while dealerships act as intermediaries, handling test drives, deliveries, and service, and earning a commission on each sale.
This approach is intended to enhance price transparency, ensuring customers pay the same price regardless of the dealership they visit. It also allows manufacturers greater control over inventory and customer relationships. However, the model has faced resistance in some markets due to its impact on traditional dealerships, which lose the ability to set competitive pricing and negotiate deals.
While BMW has not confirmed an exact date for its shift to the agency model in the UK, it was previously speculated that the transition would occur in March 2026, a year after MINI’s planned switch in March 2025. The latest adjustments are part of BMW’s broader European strategy, reflecting the lessons learned from MINI’s phased rollout.
MINI began implementing the agency model in January 2024, across ten European markets, including Germany, France, and Sweden. The UK, which is MINI’s largest market, along with Spain, Portugal, the Netherlands, and Ireland, will follow suit in March 2025. Meanwhile, BMW’s core brand is expected to adopt the agency model starting in Germany in 2026. Certain markets, such as the United States and Australia, will continue using the traditional dealership model due to structural and regulatory differences.
BMW’s move is in line with a wider trend in the automotive industry, with manufacturers like JLR, Stellantis, Lotus, and Volkswagen Group also reconsidering or delaying their own transitions to the agency model.
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