Multi-make finance and the
ability to sell direct to the consumer were among the strategies
laid out by BMW Group Financial Services CEO Christian Kalinke,
when presenting his vision of the company’s future to FLA
convention delegates.
In a dealer
market facing increasing consolidation and multi-franchising, he
said, multi-make finance (as pioneered by BMW Group FS subsidiary
Alphera), made strategic sense for his group in terms of
“protecting its core business”.
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He added that, in a market
where only 50 percent of used BMWs and Minis are sold within BMW
franchised dealerships, the ability to finance other makes was
invaluable in keeping up strong relationships with retailers of
used group vehicles outside the franchise network.
The ability to sell outside
the dealer network altogether was also posited as a possible
development to the group’s UK strategy, although Kalinke stressed
that this was “not near the top” of his list of
priorities.
In the US, BMW Group sells
finance direct to consumers via its Up2Drive online
channel.
Kalinke said: “The next generation will be less inclined
to do their finance and insurance transactions in
dealerships.”
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