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BMW scales back on free services and enhances dealer bonuses.

All BMW dealerships will get paid a monthly bonus of one percent of the sticker prices of new vehicles sold, come April. The brand will cut its free scheduled maintenance to 3 years and 36,000 miles in order to prep for this change.

Ludwig Willisch, CEO of BMW of North America, says the dealers must meet the brand standard, customer satisfaction and used vehicles sales targets, and hire genius product specialists in order to qualify.

Willisch adds that dealers who get above threshold performance ratings should get more because in some shape it is linked to additional cost. BMW will also let dealers transfer free scheduled maintenance to a new owner.

This is all in hopes to change dealer standards to improve customer satisfaction and boost profits. Service customers are already asked whether they would come back to the store, but BMW wants to make sure buyer loyalty is measured more accurately before the standard changes.

Above all, Willisch says that top performing dealers should not be treated as the lowest 20 percent, so if your dealership meets the standards, April will mark an exciting month for your store.

Source: BMW trims free service, adds dealer bonus

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