BMW to help out dealers with up to 5b RMB in funding
Gasgoo.com -In response to falling profits from its dealers, BMW has taken action to open a new association to supply additional funds for its dealer outlets,Shanghai Securities Newsreported today. According to Sang Zhimo, an analyst with China Automobile Dealers Association, BMW will supply up to 5 billion RMB ($814.86m) of funds, which will be awarded on a performance basis.
The formation of the association followed after a union of dealers from Zheng Tong Auto Services, Yongda Automobiles Services, Baoxin Auto Group, Rundong Auto Group and other networks sent a letter to BMW Greater China President Karsten Engel. The letter included a number of requests, such as asking for 6 billion RMB ($977.83) in funding and additional performance rewards.
Although agreeing to offer funding for its dealers, a source close to the matter stated that BMW will not grant subsidies to each of its dealers; rather, funds will be awarded based on sales performance and sales diversification. Less successful dealers will only receive minimal funding if any at all.
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