MINI USA to Allow Non-BMW Dealers to Open MINI Stores
In a bold turn, MINI USA’s new Chief Motorer Michael Peyton is open to lifting the requirement that MINI Stores be associated with BMW Dealers. That rule, in place since the brand’s 2002 launch, has kept MINI tied both figuratively and literally to BMW. Now that rule may be going away. In an Automotive News interview Peyton explained:
When looking to expand, or replace an underperforming dealership, Peyton said he will seek the “best operator” in the market. “For markets where Mini needs to perform better, I’ve got to make sure I’m looking at who the right operator is, regardless of what franchise they have. We need to make sure that we look at where the customers are, where the opportunities are in the market and to make sure that the network is properly structured. I’m focused on the throughput of the stores.”
According to Peyton a handful of non-BMW dealers have expressed interest in MINI.
More than half of current MINI dealers losing money in 2019, according to Peyton. In a cost cutting move, BMWNA agreed last year to allow MINI dealers to move into BMW stores and downsize locations. According to Peyton, around 25% of dealers have expressed interesting in moving that direction. About half have begun to do so.
MotoringFile Take
Given the realities of the industry and MINI sales in the US this move, while bold, seems inevitable. While the association with a premium/luxury brand like BMW typically reflects well on MINI, it’s holding the brand back from being more nimble in a market that is constantly evolving.
<p>Overall, I am optimistic about this move, but in some ways I am sad that it took this long. Back in 2005-2006 when I first purchased a new MINI, I definitely enjoyed the independent dealer I bought from.</p>
<p>Personally, I greatly prefer the independent dealership experience and I am pretty sure I would make sure to go that route versus an in BMW store experience. Especially, if that BMW dealer was/is a lesser quality (more sleazy) one.</p>
<p>Well .. okay .. it is bold .. I don’t necessarily like it but I guess I understand it. After all it <i>is</i> important for the brand to do well.</p>
<p>Personally, I am one of those who love that MINI is part of the BMW family, however .. my preference would be for MINI to stay independent from BMW and Non-BMW dealerships.</p>
<p>MINI is very well thought out captivating and enticing enough to stand on it’s own .. just like a BMW. In fact .. I think .. MINI should be taking on a more ‘bespoke retailer’ philosophy where a MINI store is more akin to an Apple Store: ultra-premium, semi-exclusive, and delightfully-quirky.</p>
<p>Like Apple .. MINI carries a certain magic but this magic as we see is not translating into sales.</p>
<p>One issue is marketing. I do not think MINI NA has mastered ‘money-spending-marketing’ the way Apple from their Spaceship Campus in Cupertino have.</p>
<p>Second, there likely are <i>some</i> internal problems at a few MINI locations.</p>
<p>I had the privilege of working for a prominent dealer network that had two MINI stores in a major metropolitan area and I saw first-hand how blithely unaware of spirit of the product and the lifestyle of who the brand’s true customers were.</p>
<p>This move doesn’t directly address any of those issues .. but we shall see.</p>
<p>This is news?
MINI of Des Moines is a non-BMW dealer.
It has been in operation for several years now….</p>
<p>Yes it’s mentioned in the article. It’s the one lone example that MINI has allowed previously (due to geographic needs).</p>
<p>Could this be a strategic move to make selling the MINI brand easier for BMW down the road, should they choose to go down that path?</p>
<p>That’s a good point. When the all-new MINI was launched in 2001, BMW ensured that the cars were sold in standalone showrooms separate from BMW, just in case the MINI brand was not a success.</p>
<p>Wow, that picture in the thumbnail is the most unflattering angle of a MINI that I have ever seen. I wonder if this image was provided by MINI, if it was that was a horrible choice.</p>