|BMW's Transparent System of Real-Name Pro Forma Invoice
[autodaily Teddi Kim] The leading import brand in Korea, BMW’s July sales slipped to 2,638 units, an unprecedented 45.2% drop, compared with the previous month’s 4,820 units.
BMW Korea’s sales show a clear sign of recession entering this year. During a couple of last years of 2014 and 2015, their monthly sales didn’t ebb below 3,000 units, but in January, February, and July this year their registration was less than 3,000 units per month.
Especially the January’s 2,410 sales registered the worst in two years since September 2013.
Due to the sluggishness the first seven month’s sales stood at 25,792 units, lagging far behind Mercedes-Benz’s 28,672 units over the same period.
But the BMW’s drop does not seem to be so much negative as it has been predicted as such.
In order to keep transparency of sales, BMW Korea implemented an official real-name pro forma invoice and an official settlement certification system.
The official real-name estimates are for preventing bogus invoices, and so customers can get car deliveries only through the system.
In the real-name invoice, dealer’s name, salesperson’s position, and photo are specified and posted.
And an official settlement certificate is also issued in order to confirm by the consumer the car model, its specifications, and final costs. The certificate is for clarifying the bond surcharge that differs by region and salesperson.
Owing to those systems, car deliveries are under a predictable control, and so sales seem to have been sliding.
Some importers, like BMW, have been overdoing with excessive sales targets and unregulated incentives or rebates during the past several years, and furthermore more recent sprouting of on-line outlets have caused deteriorating dealer profits and departure of sales persons, eventually demolishing the existing sales networks.
BMW hence values that “the volume does not come before the sound order of sales network, and so sluggish performance will be inevitable for some time for a transparent and solid network.”