BMW dealers may complain to Brussels over contracts

Munich. The German BMW dealers association may file a complaint with the European Commission against BMW's new dealer contracts unless the automaker makes changes to the current draft.

Dealer spokesman Peter Enders expects the final contract to be ready by the end of May. He is planning to "have some of the paragraphs checked by Brussels for our own security."

At the center of the dispute are changes in the margin structure, payments for handing over customer information to BMW, and limiting the contract duration to only five years. Dealers fear that once five years have elapsed the manufacturer might not extend contracts with partners who have taken on a second brand.

BMW Sales Director Ralph Weyler insisted that "the sales performance" would remain the main criteria for the renewal of contracts. He said that BMW had "developed the dealer contracts carefully and under consideration of all legal requirements."



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