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BMW web sales plan opposed by German dealers
Tue, 23 Jul 2013Tesla isn't the only manufacturer that is facing a backlash over its plans to sell cars directly to customers. BMW is under fire from its German dealerships over its desire to sell its cars via the internet.
BMW has plans to sell the new i3 through the World Wide Web, while a "Mobile Sales Force" will be making house calls. According to Automotive News Europe, Head of German Sales Roland Krueger told German weekly Wirtschaftswoche, "We can imagine that Internet sales could be expanded to all models." This is the particular caveat that has traditional brick-and-mortar dealers so up in arms.
According to the head of BMW's German dealerships Werner Entenmann, "We told BMW in no uncertain terms that we cannot accept direct sales channels." Reuters reports that an anonymous dealer has gone so far as to pledge not to use the sales force in Germany. Krueger, for what it's worth, told Wirtschaftswoche that the "backbone" of BMW sales will still be traditional dealerships.
BMW confirms X4 for next year, i3 preorders starting to add up
Wed, 20 Mar 2013BMW has confirmed the long-anticipated X4 will bow next year. Norbert Reithofer, chairman of the automaker's board of management, made mention of the upcoming CUV during remarks at the company's annual accounts press conference. Reithofer said that BMW has sold more than 2.7 million X models since it began producing the machines, and that the company plans to expand those offerings with the new X4 next year. He declined to offer up any more details, though from what we've heard so far, the model will be more of a crossover than either the X3 or the X5.
Reithofer also made it clear that BMW is getting serious about electric vehicles, saying the i3 (pictured above, in prototype form) is "definitely coming to market" and that the runabout will be ready by late 2013. BMW reports it has had "Several hundred advance orders" for the EV. As you may recall, the i3 uses a special carbon fiber reinforced plastic passenger cell to save weight and boasts a standard range of 93 miles. You can read the full transcripts from the press conference below for more information.
BMW slapped with discrimination suit by EEOC
Thu, 13 Jun 2013According to a report from CNNMoney, BMW has been hit with a lawsuit from the US Equal Employment Opportunity Commission after revised criminal background check policies resulted in the dismissal of 88 contractors, 70 of whom (that's about 80 percent) were black. A total of 645 contractors were required to submit to background checks at BMW's facility in Spartanburg, South Carolina after BMW switched contract companies at its plant.
Though the 88 persons who were not rehired by the new contractor all had criminal records, that may not necessarily be a legal way to screen applicants, as the EEOC counters: "BMW's policy has no time limit with regard to convictions. The policy is a blanket exclusion without any individualized assessment of the nature and gravity of the crimes, the ages of the convictions, or the nature of the claimants' respective positions."
BMW's actions were in violation of the Civic Rights Act of 1964, according to the EEOC, because they utilized "a criminal conviction policy that disproportionately screened out African-Americans." A recent bulletin offering guidance from the EEOC on the Civil Rights Act can be found here, but the EEOC's stance on the issue has been the same for years: "Since issuing its first written policy guidance in the 1980s regarding the use of arrest and conviction records in employment decisions, the EEOC has advised employers that under certain circumstances, their use of that information to deny employment opportunities could be at odds with Title VII."