BMW to cut prices, dealer discounts

BMW of North America Inc. likely will cut sticker prices and trim dealer discounts on new cars and light trucks, starting Jan. 1.

BMW plans to compensate dealers by boosting reimburse-ment for warranty work by 25 percent and by making it easier to earn bonus money for meeting facility and personnel requirements, said Frank Ursomarso.He owns Union Park BMW in Wilmington, Del., and is the NADA line representative for BMW.

BMW spokesman Tom McGurn said BMW will pay more for warranty work so dealers can pay service technicians and service writers better. He declined to discuss details.

BMW's dealer discount is now 10 percent to 12 percent, depending on options, Ursomarso said. The dealer discount is the difference between invoice and suggested retail price, as a percentage of suggested retail. That percentage will be 9 percent, starting Jan. 1, the dealer said.

You can reach Jim Henry at autonews@crain.com

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