07/22 2024
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After BMW withdrew from the price war and raised prices, BMW 4S stores across the country have refused to deliver vehicles or even demanded that customers pay extra for delivery, leading to the emergence of the least desirable situation.
Recently, BMW officially announced its withdrawal from the price war, focusing on business quality in the Chinese market and supporting dealers to take a steady approach. Influenced by this news, BMW 4S stores have reduced terminal discounts and increased vehicle prices. Subsequently, Audi and Mercedes-Benz, the other two luxury brands, also announced their withdrawal from the price war, demonstrating remarkable tacit understanding among the BBA trio.
In response to this news, observers believe it is BMW's reflection and correction on the "price for volume" policy, attempting to alleviate pressure on automakers and dealers by raising prices and restoring brand image through a public relations move. Of course, many consumers also argue that BMW's price hike at this time is undoubtedly self-destructive, ceding a promising market to competitors. After all, the era when BBA's every call was answered is over, with too many alternative models available.
Regardless, BMW's price adjustment is a normal business practice for automakers and 4S stores, not involving illegal behavior. However, as BMW China lowered its sales targets, consumers across the country have encountered overbearing clauses of refusing to deliver vehicles. Vehicles contracted earlier have been refused by BMW 4S stores, with sales temporarily demanding additional payments for delivery. Such chaos has occurred more than once.
Feedback from some consumers indicates that upon vehicle delivery, they were informed of price increases ranging from 10,000 to 30,000 yuan, or were told there were no vehicles available. Some were required to apply for financial installments to receive their vehicles. The models mainly affected are the i3, ix3, and 3 Series, which experienced significant price cuts earlier this year. If BMW 4S stores do not deliver these heavily discounted models, they can recoup some losses, but the resulting damage to brand image is immeasurable.
It is believed that such behavior is not what BMW China wants to see and deviates from the original intention of alleviating pressure on dealers. When consumers sign contracts with 4S stores and pay deposits, the sales contract is formed and takes effect. Refusing to deliver vehicles or temporarily increasing prices for delivery violates the contract terms and undermines credibility. BMW 4S stores that begin to refuse to fulfill contracts or even exploit information asymmetries to force consumers to pay extra for delivery are acting in stark contrast to the image of a luxury brand.
Why has BMW become what it once despised? Faced with the losses from significant price cuts, it seems that honesty can also be disregarded?
Undoubtedly, such behavior by BMW 4S stores is illegal, and consumers can file complaints with relevant departments and even sue if the issue remains unresolved. Price cuts or increases are individual business practices, but failing to fulfill contracts is illegal. Did BMW consider this outcome when it withdrew from the price war and engaged in such reckless acts of dishonesty?