Business / Auto China

New CEO: Quality and rising services

By Han Tianyang (China Daily) Updated: 2013-04-20 07:44

New opportunities

As the Chinese car market gradually matures, there are also many new opportunities such as used-car sales and financial services, Engel said.

BMW sold more than 326,000 new cars last year in China but only 15,000 used cars were traded.

"With the market growing, the (used-car) business will come and it is very important for our dealers here to develop early," Engel said.

BMW introduced its used-car program called BMW Premium Selection to China in 2006 and opened its first authorized used-car center in Shenzhen in 2011. The company now has four such facilities in the country and more are expected to come on line.

At the same time, financial services operations ensure customers can trade the car in and get the pay they expect, Engel said.

"It's a complete circle of new car sales, good after-sales services, high customer satisfaction, the used-car business and then taking care of the used cars. In this way you can keep the customers in your loop for a lifetime - that's the target ," he said.

"To sell one car is relatively easy, but to sell a second or a third, you need all these to come together."

Customer satisfaction

The first big project announced by Engel after he took his post in China sent a message that the new chief is determined to improve customer satisfaction and further strengthen the relationship between the brand and car owners.

The Future Retail program recently announced by Engel aims to raise the benchmark for a good retail experience. In fact, China is one of the first markets for BMW to implement the program, even before Germany and the US.

To start the program, on April 15 the company unveiled its first Brand Experience Center in the world, which is located in Shanghai. There customers can learn everything about the BMW brand without pressure from a sales person.

Not allowed to sell cars, the consultants - called "product genius" by BMW - provide answers to interested customers to questions they have about the brand.

The Future Retail program "combines all the essence of what we have learned in the past", said Engel, noting it also addresses some of the criticisms of showrooms.

"One of them is that if I go to a dealership and 10 salesmen jump on my back and want to sell a car and force me to sign the contract - this shouldn't be the way it is."

According to the company, in the future, the "product genius" will be on site at BMW dealerships across the country to improve service quality.

Engel said that by the time he retires, he wants to see that BMW in China is a "strong, desirable and respectable" brand with the "highest customer satisfaction".

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