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BMW is carrying out a full review of it’s dealer network in Britain. This comes as dealers near the end of the five year contracts they were given in October 2003. The review is expected to take into account dealers relationships with on-line brokers and finance companies. BMW believe some dealers have been supplying vehicles at a discount level which ditresses the residual values of the product and provides unfair competition to it’s retail operations. If BMW does take control of corporate sales discounts in an attempt to protect residual values, many dealers fear overall sales figures will be hit hard as the manufacturer faces stiff competition from the likes of Audi, Volkswagen and Saab in it’s attempt to fill company car parks up and down Britain with 3 and 5 series saloons. Will BMW be fore-going volume in search of profit in the new year? If so how will dealers react? Whatever the outcome 2008 is sure to be an interesting year for suppliers of the famous marque. �

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