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BMW launches sweeping relief plan for NA dealerships - Automotive News

BMW of North America has instituted a sweeping relief plan to help its U.S. dealers preserve liquidity and prop up the balance sheet as the coronavirus contagion empties showrooms and service drives.

The package includes financial incentives, relaxed performance objectives and loan payment relief. It is similar to dealer-focused plans instituted by Nissan, Mercedes-Benz and other automakers.

The challenge facing the auto industry is "unprecedented," CEO Bernhard Kuhnt told dealers in a note late Thursday evening obtained by Automotive News.

"Safeguarding our business and the ... retail network, while helping to ensure that you have the necessary support and working capital to navigate this uncertainty, is our primary focus," Kuhnt said.

A BMW spokesman could not be reached late Thursday.

For March, dealers will receive a $1,000 payout on every new vehicle sold and a $500 bonus for every loaner retailed. The CPO sales bonus is also guaranteed for this month.

Through June 20, retailers will receive the 5 percent Added Value Program bonus related to meeting training, sales loyalty and service effectiveness goals.

Dealer payments, including principal and interest, on floorplans, capital loans, mortgages and other commercial borrowing will be deferred for 90 days, if requested by the dealer.

The BMW plan also includes financial relief for customers.

Finance captive BMW Financial Services will defer customer loan payments until June 30.

Customers whose leases are due will be offered a complimentary 30-day lease extension until April 30.

The initial goal of BMW's relief package is to "secure operational stability" so dealers can continue to deliver sales and service, Kuhnt said.

"We are concentrating on supporting the ... network's concerns over dealer cash flow, customer interaction and business enabling," the CEO said.

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BMW launches sweeping relief plan for NA dealerships - Automotive News
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