New BMW Stores?

I know a while back there was a thread about BMW stores closing down.

The following comes from BMW's XPLOR website/forum, which is all but been killed, a ghost town now days...


"BMW Motorrad USA Expands Dealer Network with the Opening of Eight New Facilities

Woodcliff Lake, NJ  February 10, 2009 BMW Motorrad USA has announced the opening of eight new dealerships within the past five months to better serve BMW motorcycle customers in new and underserved markets.

ÔÇ£In 2010 and beyond we will continue to identify growth opportunities for the BMW brand in markets that do not currently have a BMW motorcycle dealership by partnering with new or existing motorcycle dealers in those areas,ÔÇØ commented Todd Andersen, BMW Motorrad USA Marketing Manager.

The newest authorized BMW dealerships include: Van-Wall Powersports in Perry, IA; BMW Motorcycles of Chattanooga in Chattanooga, Tenn.; Bergen County BMW Motorcycles in Rochelle Park, NJ; Montgomeryville Cycle Center in Hatfield, PA; BMW Motorcycles Tulsa in Tulsa, OK; BMW Motorcycles of Spokane/Westside Motorsports in Spokane, WA; BMW Motorcycles of Utah in Sandy, UT; and Kissell Motor Sports in State College, PA.

ÔÇ£Our dedicated dealer network was the key to our success last year,ÔÇØ added Mr. Andersen, citing the fact that BMW Motorrad USA outperformed the industry for the 2nd year in a row in 2009 despite an overall motorcycle industry decline of 41 percent. ÔÇ£Our dealers continued to serve our customers well thanks to new products like the K1300 GT, K 1300 S, and the new S 1000 RR Superbike, as well as attractive financing programs from BMW Financial Services.ÔÇØ "

Nice to see them investing in growth of the dealer network. I have seen a lot of posts from folks who have significant distances to travel in they need service or parts.

We have two dealers now in the Salt Lake Valley. Competition is always good, and I wish good luck to both (especially the newer one).

Anyone have any accurate number, as to how many BMW-authorized dealers now exist in the USA?

Some years back, it hovered around 142 or something close to that.

Where are we now???

Wow BMWNA finally figured out that you need dealers to sell bikes. Well better late than never. I am curious about the breakdown of the new dealers as to dealer type - are they multi line, BMW cars and bikes, or BMW motorcycles only. I have been thinking that with the new go-faster that the multi line dealer, until recently the bane of BMWNAs existance or so it seemed, might be a good venue for the new sport biike. Customers who are in to look at rice rockets can now see the BMW version in the same place. I would be interested a year down the road to see what type of BMW dealer sold the most S1000RRs multiline or BMW only.

I too am curious about the present total number of dealers. My guess is that the 140ish number is still probably pretty close to todays total number. They have added the eight new ones which is good but from my reading on the websites there have been quite a few closures the past couple of years. At least they are heading the right direction by opening some new ones.

I do know that the new dealer in Chattanooga is a motorcycle only dealer, but it does sell Ducati along with BMW.

warredon said:

I do know that the new dealer in Chattanooga is a motorcycle only dealer, but it does sell Ducati along with BMW.

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There are links to the new dealers on the RA site. I checked them out briefly and I think six of the eight sell other brands on motorcyles, don't know if they have separate BMW stores or not though. The two that appear to be BMW only may not be. I did not dig too deeply I was just slightly curious.

"Expands dealer network" does not eliminate the possibility one or more of the "new" dealers is simply a replacement for one that closed nearby.

Still, it's a good sign new dealerhips are opening, no matter the circumstances.

Personally I have trouble seeing the "service" provided to BMW enthusiasts when a mult-line dealer features other than European bikes, but perhaps this works in some instances.

Combined motorcycle/car BMW dealerships are my favorite.

Interesting spin from BMW Motorrad. I wonder what the total number of US dealers was five years ago vs. today? I live just north of Philadelphia and have seen three dealers close their stores. It's great to see Montgomeryville Cycles add BMW to their brands, but -3+1=-2.

You guys crack me up.

BMWNA didn't just figure out they need dealers to sell bikes. They knew that all along. They don't own the dealers they franchise them. They have held in the range of 150 dealers and will continue to do so for the near future.

The head of BMW Motorrad NA first public appearance was at a dealer meeting. His second was at the MOA rally in Gillette.

What discussions like this miss is that you have to find people willing to invest the money, no matter how the franchise agreement is designed, that are willing to become involved and stay in the business.

Mika said:

You guys crack me up.

BMWNA didn't just figure out they need dealers to sell bikes. They knew that all along. They don't own the dealers they franchise them. They have held in the range of 150 dealers and will continue to do so for the near future.

The head of BMW Motorrad NA first public appearance was at a dealer meeting. His second was at the MOA rally in Gillette.

What discussions like this miss is that you have to find people willing to invest the money, no matter how the franchise agreement is designed, that are willing to become involved and stay in the business.

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And the motorcycle business for any brand is not at all what it was in the 1970s when many BMW dealerships began business. And it is not at all shocking to me that some old-time dealerships don't last as founders retire and new inheritors or new investors try and fail to carry on. I still remember when the two main mechanics at a respected dealership had migrated: one from being a tractor mechanic and the other from being an airplane mechanic. And back then you didn't need a few million to open a sufficient volume dealership to pay the help and stay alive. That's for a decent location, technical training, tools, parts inventory, bike inventory, and operating capital even for a no frills new dealership.

What some others have done that BMW dealerships have so far failed to do much of is go the whole powersports/power equipment route: motorcycles, snowmobiles, 4 wheel ATVs, little dirt bikes, garden tractors, generators, chainsaws, and outboard motors in some mix or match. But if you think the parts guy at a BMW dealership ever gets confused, you ought to see them in one of these places. And it's worse back in the service bays. But the cash flow works - sometimes.

Mika said:

The head of BMW Motorrad NA first public appearance was at a dealer meeting. His second was at the MOA rally in Gillette.

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And thats significant in regard to number of dealers because.....?

PGlaves said:

What some others have done that BMW dealerships have so far failed to do much of is go the whole powersports/power equipment route: motorcycles, snowmobiles, 4 wheel ATVs, little dirt bikes, garden tractors, generators, chainsaws, and outboard motors in some mix or match. But if you think the parts guy at a BMW dealership ever gets confused, you ought to see them in one of these places. And it's worse back in the service bays. But the cash flow works - sometimes.

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I have had my bike serviced a multiline BMW motorcylce dealer that also carries snowblowers etc. and at a BMW only dealer. I noticed no difference in quality to speak of, both provided good service at the service desk and in the bays. I know this experience can vary but that is what I found neither really had much of an edge over the other. I do think that multiline dealers will perhaps make more dealers viable in more markets. Perhaps reverse the BMW dealers in urban areas tend of the past serveral years.

PGlaves said:

And the motorcycle business for any brand is not at all what it was in the 1970s when many BMW dealerships began business. And it is not at all shocking to me that some old-time dealerships don't last as founders retire and new inheritors or new investors try and fail to carry on. [snip].

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At the dealership level success was the result of a 'key man' in many cases. This person or couple were the driving force. Heirs may have no desire to carry on in their place having developed careers of their own unrelated to the motorcycle shop that paid for college or allowed the next generation to explore other options.

GSfornow said:

And thats significant in regard to number of dealers because.....?

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Peiter de Waal's meeting first with the dealers at a national meeting of BMW dealers has a soft impact on the numbers of dealers. I included the comment as part of my post because it was clear from his comments to the Rally audiance he spoke to he was very aware of the challenging history that he inherited in taking over the job. de Waal impressed me as a motorcyclist and a businessman. I am as confident that he will not make everyone happy (dealers and owners) as I am that his is the best man for the postition that I have ever met or read about in BMW.

Mika said:

Peiter de Waal's meeting first with the dealers at a national meeting of BMW dealers has a soft impact on the numbers of dealers. I included the comment as part of my post because it was clear from his comments to the Rally audiance he spoke to he was very aware of the challenging history that he inherited in taking over the job. de Waal impressed me as a motorcyclist and a businessman. I am as confident that he will not make everyone happy (dealers and owners) as I am that his is the best man for the postition that I have ever met or read about in BMW.

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With the revolving door management at BMWNA how long do you think it will be before you are hearing a similar speech from the next person to hold his position? Unfortunately

Any movement towards a at least a few more dealers I see as a welcome change in policy.

Revolving doors have certainly created many of the problems for companies including BMW.

Discussions like this are fun but they often are xenophobic taking into account the needs wants and desires of US riders while ignoring that BMW is a German based company in business to make money for their share holders and do that, in part, by building and selling motorcycles. We quick to come up with marketing ideas to expand the sales without taking into account the ability to make a profit over a longer term than a single season or yearÔÇÖs sales numbers. I would very much like a greater number of dealers. I would like options that do not include the 160+ mile round trip to my nearest dealer. The reality for me is that ainÔÇÖt going to happen. The market is not there.

Spend some time researching BMWÔÇÖs business reorganization plan announced IIRC in 2007. It has previously been posted on the forum.

RobertJ said:

Interesting spin from BMW Motorrad. I wonder what the total number of US dealers was five years ago vs. today?

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Living in west central Illinois it used to be less than an hours ride to the BMW dealer (Grayboy) in Peoria. As the story goes BMW NA insisted BMWs had to be in a stand alone show room, not next to any Japanese bikes. Grayboy being landlocked with no room to expand dropped their BMW franchise.

With Grayboy closed it became a 2 hour ride to Twin City BMW in Savoy, Illinois. They closed last Saturday. Now my nearest dealer is Gina's 3 hours away in Iowa City. Somehow I don't think a new BMW is in my future if I have to take it that far for warranty service.

I checked BMW's web site and they list 144 dealerships in the US which includes Twin City in Savoy.

Multi-Line Dealerships

I had thought that the day of single line dealerships were history. They seem to be in Houston, anyway. My impression of the best BMW service here is at a dealer who hardly tries to sell BMW motorcycles, based on the floor space they get. Honda, KTM and some Japanese brands dominate. You have to go to the back corner to find the few BMWs on the floor. They do carry "mules" and ATVs. No snowmobiles for Houston, I am afraid.

There is another dealer in Houston, who also carries British motorcycles. That dealer has lots of BMWs on the floor. I had just purchased an '08 R1200R and the aftermarket windshield fairing was touching on the right side of the gas tank. So I took it to them to ask that they correct the problem. The mechanic had it over an hour, and it came out worse that when it went in. When this was subtly pointed out, he put velcro on the fairing and said it wouldn't do as much rubbing that way. Whew.

PGlaves said:

What some others have done that BMW dealerships have so far failed to do much of is go the whole powersports/power equipment route: motorcycles, snowmobiles, 4 wheel ATVs, little dirt bikes, garden tractors, generators, chainsaws, and outboard motors in some mix or match. But if you think the parts guy at a BMW dealership ever gets confused, you ought to see them in one of these places. And it's worse back in the service bays. But the cash flow works - sometimes.

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Paul,

I've dealt with a few multi-line (products and brands) BMW dealerships and it was OK, relative to service, but they all eventually died. However, I don't think that business model is what BMW wants. Based on comments from dealers, BMW wants to offer the "BMW experience" which requires a bit more flash than a nearby lawnmower display can offer. To me, that's pretty bogus since I would like to think that someday I'll be wealthy enough to buy a Honda mower.

In any event, as one long time and successful dealer told me about taking on a BMW franchise, "I couldn't sleep carrying that much debt". That's hard to argue with.

Jon

BMW has announced a few New Dealers, How many went South ??? Mount Laurel NJ is one Dealer that went out of business last year. Is there a Net gain ?