The new chief executive of BMW Ireland says Irish customers can expect quicker delivery, but not lower prices as the German firm takes over distribution here on October 1st.
The handover by Motor Import Ltd of distribution to BMW coincides with the implementation of new rules on a more open European car market. Authorised dealerships can now stock several brands and consumers may buy from dealerships or ask other intermediaries to source new cars anywhere in Europe.
"Our move is in line with our European strategy of setting up national sales companies to be closer to the market and the customer," says Conrad Schmidt, chief executive of BMW Ireland. "Some have taken over retail networks, but we don't plan to do this. Retailing our cars is best done by independent professionally-led entrepreneurs through the dealership network."
BMW's response to the new rules has been to harmonise pre-tax prices of its cars throughout the EU. "In fact," says Schmidt, "wholesale prices of the 7 Series and the Z4 are the same in each EU country and this will be the case for all new models launched."
While Irish BMW buyers will not benefit from lower prices, they are likely to be offered more variations in models, in line with those offered in Britain. British customers have access to a higher specification, such as SE or special edition models, which include extras such as automatic air conditioning, front fog lights, cruise control, parking distance control and a sport's multi-function steering wheel at a better price than if selected separately from the options list. Changes to its existing product offering will be announced in September.
All pre-sale tests and preparation will now be done in Britain, not at Motor Import Ltd.
With access to a larger pool of cars, BMW Ireland aims to reduce waiting times from a typical three months to two months.
Schmidt says that BMW's move here augers well for the Irish market. "BMW is very satisfied with its dealer network," he says. "They are geographically well spread, well-established and financially strong. We don't see a contraction, rather opportunities for investment."
Block Exemption will affect all manufacturers more or less equally, he says, though he concedes that premium brands may be more resilient. "It will be important to develop our brands further, maintain their desirability and continue to differentiate them."
BMW joins Ford, Fiat, Opel and Volvo as the main brands distributed here by parent companies rather than by Irish-owned importers.
Twenty people will initially be employed in its Dublin office when it opens on October 1st. They are likely to have a busy year as BMW sets out on one of its most ambitious new product launches to date starting with the 5 Series in October, followed with the 6 Series Coupé and Cabriolet, the X3 sports utility vehicle and the new 1 series.