Saturday, 18 April 2015

Chinese dealers in quest of extended commercial aid from BMW



    In a letter sent by Chinese dealerships to BMW earlier on dealers complelled BMW to line a lot of realistic sales targets, lower wholesale costs and spin out grace periods for payment. BMW set a target sales goal of 500,000 in China this year, a 10 % increase over 2014, however the new target is seen as surreal. In January, BMW in agreement to supply regarding five.1 billion yuan ($820 million), in subsidies to its dealers in China, however the dealers have largely wiped out those subsidies to draw in new customers.BMWThe car market in China has grownup only 1 % within the first quarter, compared to the double-digits growth within the past.Toyota and Audi, different 2 vital players within the Chinese market, are facing similar difficulties. Audi has conjointly in agreement to pay a package of regarding two billion yuan in incentives to its Chinese dealers, whereas Toyota pay out 1.24 billion yuan in subsidies.

    Source: Autobei

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