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In the past few days, BMW announced that they would no longer participate in the price war in China. In this regard, the outside world interpreted that BMW was a little overwhelmed by the internal circulation of the price war, and its profit margins continued to plummet. It really couldn't bear it anymore, so it simply started to lie flat. What the cost is, it is hard to say at this stage, but one thing is certain, at present, even if BMW officials want to lie flat, it is estimated that their dealers may not be willing to agree to stop the internal circulation. Why?

Although BMW and its dealers seem to be one, in fact, the gap between them is very large. Cooperation is only on the surface, and interests are king. When the interests of BMW and dealers cannot be balanced, the possibility of them still being able to cooperate together will naturally become very small. When BMW officially announced in a high-profile manner that it was unwilling to engage in internal competition, the first to lose interests were not BMW officials, but the interests of these dealers. For dealers, interests are the real king.

Nowadays, if dealers want to make money, they don’t make money by selling cars, but by repairs and a series of services. Especially now, many dealers make money through after-sales service. What they hope most is that BMW cars will sell well so that they can make more money. Therefore, their solution to this is naturally to sell more cars. Now the official level has announced that they will give up internal competition.

Do you think these dealers will agree? Of course it is impossible, because if BMW does not participate in the price war and internal competition, it will directly lose their interests. No matter how stupid these dealers are, when the official begins to abandon their own interests, they will not stand still and will definitely take action. The best solution to this is probably to directly turn against BMW officials. Such a thing has happened before.

Take Porsche next door. At that time, Porsche China had an issue with inventory backlog. The dealers instantly became furious and started running to the Porsche headquarters to make a fuss. The headquarters was dumbfounded and quickly sent people to reach a settlement with the dealers. Only then did the matter get suppressed. But now on BMW's side, do you think these dealers will agree that BMW will not be involutionary? That is impossible. The dealers are not that stupid. The pressure of interests and performance is there.

Then, there are the problems that BMW has itself. Before, why was BMW able to become one of the companies that made money without doing anything among joint venture cars? The reason is very simple. It was because BMW was easy to sell, the brand was strong enough, and coupled with the various support from dealers, it was natural that it could do better than other car companies. It was also normal. But unfortunately, joint venture cars are generally not easy to sell nowadays. At this time, do you think BMW can still stand firm, and are those dealers willing to continue to support them?