BMW and Chinese dealers haven’t reached an agreement over 2015 sales targets

Some of BMW’s dealers in China are asking the Bavarians to reduce their sales targets due to China’s slowing economic growth and an anti-corruption crackdown on government officials.

The relationship between the two partners is becoming increasingly strained, with some Chinese dealerships saying they won’t take new vehicles unless BMW agrees to lower sales targets and pay them subsidies.

Executives at two BMW dealer operators said they are asking BMW to lower its sales target for 2015 and pay dealers five billion yuan ($806 million) in subsidies. If the conditions couldn’t be met, dealers would stop taking orders of BMW cars from Thursday at the earliest, they said to Wall Street Journal.

Leave a Reply

Your email address will not be published. Required fields are marked *