BMW has reportedly agreed to pay over $800m of subsidies to its dealers who are struggling to be profitable in a slowing Chinese market.

Reuters reported that BMW will pay 5.1bn yuan to its Chinese dealers in order to share the costs of overstocked showrooms.

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Other manufacturers are said to be considering similar moves as dealers in China complain of over-supply in a market that has seen rapid growth in recent years. However, there are signs that the Chinese car market is cooling as China’s economic growth dips in response to a weaker global economy.

The Reuters report said that BMW declined to provide details of the deal, but Chinese dealers and analysts were upbeat that an agreement had been struck with a major automaker.

See also: CHINA: Dealers warn of excess supply and stockpiling

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