Duncan Collins, BMW dealer council chairman and chairman/managing director of Stephen James, Enfield, North London, says he is not surprised with the BMW result in the NFDA survey, but he is optimistic for the future.

“The BMW brand has grown tremendously in recent times, but issues within our business continue to cause frustration.

For example, over the past two years the National Dealer Council has raised the issue of dealer charges with BMW UK.

“As volume has increased, dealer overheads and fixed costs have risen at an alarming rate and produced unprecedented demands on dealer cashflow.

“But BMW (UK) is clearly listening and has responded. In October 2005 a Dealer Charges project was initiated with NDC members and BMW senior management working together.”

Collins says the project should help the retail network reduce costs by more than £10m this year.

And, he adds: “BMW (UK) has committed to seek further cost savings to the dealer network. I am convinced that working together, BMW and its franchised dealership network will remain the best and most profitable in the country.”