BMW held its national dealer investors' conference in Beijing on Wednesday during which the OEM and investor partners conducted an open and sincere communication. The investors acknowledged the effective measures BMW had taken to cope with the market fluctuations in the first half of this year, and expressed their constructive suggestion regarding the second half-year target for steady growth.
Yang Aihua, Chairman of Baoxin Group said: "Even though the market remains challenging, BMW has shown the ability to respond to the market very fast and implemented down-to-earth operational tactics, as well as its ability to reposition the product portfolio efficiently, we are confident to face the challenge together with BMW with the active attitude in the second half of the year."
Yang Peng, President of Rundong Group commented: "The supportive measures that we have received from BMW not only focus on the solutions to address the existing challenges but also include the strategic suggestions to the future development."
BMW's support to its dealers in the first half year 2015 is a combination of many measures covering five main aspects, including:
·Adjusting the supply according to normalizing demand in Q2 to optimize the level of dealer stock;
·Optimizing dealer KPIs;
·Simplifying operational process to help the dealer's capital liquidity;
·Supporting the dealers to grow new business areas including after-sales, used car and financial services, so as to diversify dealer business channels;
·Further enhancing product competitiveness by introducing new models and variants with more luxury and high-tech features, as well as new entry models to reach a wider customer base.
BMW's supply adjustment in Q2 has achieved a positive result: the average stock of BMW dealers is now below 1.5 months, lower than the industry average level. With these measures being implemented during the first half-year, BMW Group has achieved single digit growth in the first six months of 2015. In the second half year, BMW will continue to strongly support the dealers with ongoing measures to ensure the dealer stock remains healthy.
Diao Jianshen, the Deputy Director of CADA, joined the conference and commented: "We are satisfied to see the transparent communication taking place between the OEM and the dealer. We at CADA recognize what BMW has done to support its dealers and believe this kind of interactive communication and cooperation will be supportive to the overall automotive market development in the new normal."
Karsten Engel, President and CEO of BMW Group Region China, said: "We highly appreciate the passion of our dealer partners regarding our brand. Based on the principle of win-win partnership, we will continue to face any market challenges together with our dealers and jointly develop a sustainable business model for the future."
BMW has been actively launching new products in the first half year with 10 new models launched. On the CBU side, the new products include not only high-end products such as X5M, X6M and X5 Special Edition, but also premium compact cars with great growth potential including the all-new BMW 2 Series Tourers and the new BMW 1 Series hatchback. Similarly, BBA also introduced the BMW X1 and 3 Series special editions. These models added luxurious features such as Harman Kardon, Rear Camera and anti-dazzling mirror respectively, without any price increase.
In the latter half of this year, BMW will continue to support the dealers with exciting new products, including the all-new BMW 7 Series which will set new benchmarks for the industry in terms of luxury and technology. The success of the BMW X family will be underscored with the introduction of new entry models for the X5 and X6. The X5 PHEV will also be launched within the year. In addition, the BMW 3 Series will be fully upgraded.
As well as its clear new product strategy, BMW will kick off a new brand campaign in the second half year to further explain JOY with the modern spirit of our time, which will bring our brand to an even brighter future.
