BMW Australia rejects fixed-priced new-car sales despite European change

BMW Australia says it has no plans for a fixed-price business model despite an upcoming change for the German brand and its subsidiary Mini in Europe.

“There are no current plans to change our existing sales model,” a spokesperson for BMW Australia told Drive.

The rejection follows a similar decision by Jeep Australia, as reported by Drive last week, although both Mercedes-Benz and Honda have switched to the controversial system in Australia.

BMW is making the move in Europe from 2024, starting with Mini before BMW joins the new non-negotiable structure, and said the change is a response to shoppers doing their research online and then looking to move to the physical world to buy a new car.

“Our customers frequently switch between an offline and an online world. This is currently creating a systemic break, which we want to eliminate,” the sales and marketing chief for BMW, Pieter Nota, told Automobilwoche in Germany.

“We will start with the Mini brand in Europe in 2024 and introduce an agency model for all BMW cars in 2026.”

However, Mr Nota admitted there was no chance of the move being mirrored in the USA.

“No, definitely not. That would not be compatible with the general conditions in the US,” he said.