BMW faces a lawsuit from most of its German dealers because it has cut their profit margins on the 7-series range, Bloomberg News reported.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The German car dealers association, the BMW dealers association and 14 individual dealers filed the suit in Munich, according to Bloomberg. The news organisation said the dealers’ statement did not say whether they are seeking compensation or a reversal of the decision.
Bloomberg said that BMW reduced the dealers’ margin on the 7 from 13% to 11% and that the two sides have negotiated since September without agreement.
“Our position is that we can set prices without consulting anyone” and the company will defend its policy, BMW spokesman Uwe Mahla told Bloomberg. “The dealers think we have to agree with them first.”
The dealers told Bloomberg News that they expect BMW to continue to reduce their margins with the introduction of new models.
