Mini delays launch of agency sales model in Germany

Mini is postponing the introduction of the agency retail model in Germany.

The change to the agency system to sell new Mini vehicles in BMW group's home market is being delayed by six months, a source told Automotive News Europe sister publication Automobilwoche.

Problems with IT are the reason for the postponement, the source said.

Mini parent BMW said the rollout of the direct sales model in Europe is going ahead as planned.

The launch will start as planned on Jan. 1, 2024 with Mini in Italy, Poland and Sweden, the automaker said.

Implementation in other European countries will follow in several stages, the company said.

IT issues

BMW does not consider a postponement to be negative, according to the source. It is better for the automaker to build up the system properly and start with good software than to stick to the originally planned launch date.

BMW is initially launching the agency model with the Mini brand. BMW brand dealers in Europe will transition to the agency model starting in 2026.

Just a few weeks ago, Pieter Nota, BMW's former sale boss, who left the company at the end of October, said he was satisfied with the progress made with the changeover. Also in terms of software.

"We are relying on in-house development for the necessary programs, but we have been able to significantly improve them through targeted expertise from external partners," Nota said in an interview with Automobilwoche in mid-October. "The test phase for this is underway and the feedback from retailers is gratifying."

When it comes to the changeover, BMW is relying on its own expertise.

"In order to identify possible errors and problems at an early stage, we looked at the development of the software for direct sales in the group like the restart of a vehicle," Nota said. "There were the same standards of development, the same attention, the same care."

Automakers are introducing the agency model in their European markets to standardize online sales and in person purchases in showrooms.

Under the model, the manufacturer invoices customers directly and dealerships receive a fixed fee for the sale. Standard nationwide pricing for identical vehicle models ensures price transparency for customers.