BMW's North American CEO Says There Was "A Lot Of Pressure" To Boost Sales Figures And Win Sales Race

The touchy subject of pressure from automakers to “punch” cars at the end of the month drew a rueful acknowledgment from BMW of North America CEO Ludwig Willisch at an industry event today.

In a panel at the National Automobile Dealers Association-J.D. Power Automotive Forum here, Willisch conceded that at the end of 2015, “there was a lot of pressure, not only by us” to rack up sales numbers.

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MDarringer - 3/23/2016 4:13:03 PM

-2 Boost

"Punching" makes the dealer a gambler. If you register cars as loaners and the customer wants the specifications of one of the loaners but because it's not "new" they won't buy then you lose.

And THERE ARE customers like that when you get into the BMW price range.

If we're talking Fusions and Focuses (and yes its "focuses" and not "foci") then customers are often glad to get a little off list to buy a "new used" vehicle.

Sometimes a dealer has to stand up to the company and say no. It's not my role to keep the manufacturer in business. My role is to sustain my business.

I am aware of one local dealer who has done the loaner thing because they had money on the hood from the manufacturer to do so--removed the Monroney sticker-- collected the incentive, and then reattached it (after verifying to the manufacturer that the car was a loaner) so they could then sell it as "new" to the customer.

MrEE - 3/23/2016 7:18:21 PM

+2 Boost

December must have been good timing to get a 20% discount for a new BMW, though from dealer stock.

MDarringer - 3/23/2016 8:59:11 PM

-2 Boost

Here they were doing 3-year leases on the 3 Series for $2K down and $350 a month or thereabouts. That's fire sale pricing.