BMW dealers establish purchasing company

Fulda. Germany's 319 BMW dealers plan to combine their purchasing power to get better deals.

The dealers want to get discounts of up to 50 percent on goods such as service and repair equipment; on replacement parts and on services such as used oil disposal.

The decision to start the separate company, which will be established on June 1, was made in Fulda last week at a meeting of BMW's authorized dealers association.

But the group isn't looking to create any conflict with BMW.

"That's why there will be a clear boundary in the case of vehicles and original parts," said Peter Enders, president of the BMW authorized dealers association in Germany.

Each dealer will get cars and original equipment from BMW without using the purchasing company as an intermediary.

The new company will hire a purchasing agent who will be in charge of centralized buying.

The dealer association will invest an estimated 100,000 euros, or about $120,000 at current exchange rates, in the new business this year.

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