ORLANDO, Fla. -- During a 45-minute make meeting, BMW dealers learned more about the Premium Strategy business plan rolling out this year.
The business plan is anchored in a wave of new products that arrive in spring, early summer and fall. In addition, the plan now calls for dealership "performance management" and addressing supply and demand.
"It's a basic business plan," said Tom McGurn, BMW's general manager of retail and industry relations. "It's having supply and demand right.
"We're trying to work to lower days supply. At the same time, we're working to build demand, and we have a brand-new ad agency to help us do that."
Last year BMW dealers expressed concern about a second change in their margin structure. But the new business plan addresses dealers' chief concern - improving retail profits, said Tim Smith, chairman of the BMW National Forum. The forum is BMW's national dealer advisory council.
"If the Premium Strategy works, then our gross profit goes up, so the margin becomes pretty much immaterial," Smith said.
The performance management part of the plan will focus on how the BMW field staff works with dealers, McGurn said. The field staff will help dealers with turnover and their performance ranking in comparison to other dealers, he said.
Dealers will learn more specifics about the plan as it is rolled out during the next couple of months, McGurn said.
For new product, BMW told dealers there will be more of an emphasis on the M performance brand this year, with the Z4 M and the M model for the 6-series coupe and convertible arriving in the middle of the year. The new 3-series coupe arrives in spring, and the X5 will come late this year.
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