European automakers spend millions to retain Chinese dealers
A high-tech BMW store in Beijing has closed, and thousands of other dealerships in the industry are expected to close. go through Chris Chilton 17 hours ago Premium European carmakers are spending millions of euros to keep their dealers afloat in a tough Chinese car market. The country's renewed price war has resulted in unsustainably deep discounts, pushing retailers into the red. BMW's China sales fell 30% in the third quarter, and its luxurious Beijing Xingdebao 5S store was forced to close. European carmakers have been making money in China for years, but now the profit stream has reduced to a trickle, and no one knows this better than the retailers struggling to move the metal. Western premium brands are now reportedly spending "hundreds of millions" of euros to prevent dealers from going bankrupt. China's new-car market has been hammered by an influx of aspirational products from China's increasingly aggressive domestic brands and an associated price war that has forced…
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