BMW to offer US$820mn in subsidies to China dealers

BMW AG (BMW.ETR) will offer roughly RMB5.1 billion (US$820 million) in subsidies to China dealers in February in an attempt to ease strains on the dealers’ finances and their relationship with the German automaker amid slowing car-sales growth in the wider market, The Wall Street Journal reported, citing a deputy secretary-general at the China Automobile Dealers Association. BMW in China confirmed the agreement on Monday but wouldn’t confirm the financial details. Relations between many dealers and other automakers have been strained in recent months as sales growth has remained tepid, resulting in rising inventories.