BMW keeps focus on sales as EV rollout nears

BMW dealer profitability rose 10 percent last year over 2020, the automaker told retailers last week in an NADA make meeting. Despite pandemic-related business disruptions, it was the franchise's most profitable year since 2015.

In 2020, BMW defended its crown as the bestselling luxury brand in the U.S. for the second year in a row. The brand posted record sales in three of the final four months of 2020, BMW of North America Executive Vice President of Operations Shaun Bugbee told Automotive News after the meeting.

The performance showed "we can be adaptive and flexible in this new environment and still drive the OEM's goals, but also align with dealers' profitability targets," Bugbee said.

BMW told dealers that a focus for 2021 will be getting them and consumers ready for BMW's next-generation electric vehicles. In late first-quarter 2022, BMW expects to begin selling its battery-powered i4 fastback and iX midsize crossover in the U.S.

Part of the discussion about electrification is that BMW dealers will be required to invest in charging infrastructure and special equipment to sell and service the new technology, said David Sloane, chairman of the BMW National Dealer Forum and president of Sloane Automotive Group in suburban Philadelphia.

Shouldering that investment is a concern for some dealers, Sloane said. "We are hoping for a slower, less aggressive rollout of EV infrastructure — and one that is in line with sales expectations."

BMW is helping dealers assess their needs in terms of charging infrastructure, but there has been no decision on sharing costs around equipment purchases.

"Once we have the details as it relates to cost, then we will start a discussion with the dealer forum in terms of how we would go about addressing [cost-sharing] to ensure our readiness level," Bugbee said.

Digital retailing will be the biggest ongoing topic of discussion between BMW and the dealer forum this year, Sloane said. "It affects how our business is done and how it's going to be done," he said.