by Alan Douglas (09 Mar 05)

BMW dealers have had it too easy for too long and have become complacent. That's the blunt and surprising message from the boss of BMW GB.

And straight-talking managing director Jim O'Donnell didn't stop there. "Many of our dealers are simply lazy - they're just not hungry enough," he told me at the launch of the new 3-Series in Spain.

It's an issue which O'Donnell plans to address. Uniquely in the industry, each of the UK's 156 BMW dealers has a five-year contract with the manufacturer. It runs until 2008, but O'Donnell is giving them a stark warning that unless standards are improved and they "smarten up their act", some will be ditched by BMW. He revealed that several had already received "yellow cards" and over the coming year others would be getting personal letters from O'Donnell warning them that their contracts with the company were in jeopardy.

The gritty Scot, who admits he pulls no punches, gave several examples of the issues which concern him. Twenty dealers had lost out on bonuses totaling £400,000 simply because they hadn't complied with some of the terms of their contracts, particularly on the training of their staff. Others had failed to achieve the minimum standard required in other operational areas - in one case he had to send two valeters from the BMW Bracknell HQ to show an Irish dealer how to prepare cars for the showroom because what he had seen on display was "unacceptable".

A major problem is the retention of staff, especially in sales. O'Donnell told me that there was currently a 30% annual turnover of sales teams in dealerships. "That means effectively that every three years we have a new sales force. That simply can't go on. We have to get people up to standard and then hold on to them."

With that in mind, a year ago the company introduced a seven-day pre-recruitment training programme at Bracknell. That has helped bring more young people into the business but it's being followed by a new state of the art, purpose-built training centre at Reading which will open next year.

O'Donnell admitted that his dealers were performing better than some others in the business and with an expanded range they were having to work harder, not least in maintaining product knowledge - but there was still room for improvement. He refused to be drawn on naming specific dealerships: "They know who they are."

The biggest complaint from sales staff was having to work weekends ("that's when people buy cars") and the long hours. But he said BMW sales staff are generally better paid than others in the business. A top salesman can expect to earn around £40,000 a year and even the average is around £20,000. A sales manager at a dealer principal can earn as much as £100,000 a year.

Clearly O'Donnell wants to ensure they work for their money.

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