BMW has agreed to pay $820m in China dealer rebates for 2014, a person involved in the negotiations said on Monday, as the German automaker tries to stave off a potential dealer revolt in the world’s largest car market.
Talks are continuing over the German automaker’s 2015 sales target, which dealers argue has been set too high given slower economic growth in China.
The dispute reflects growing tension between dealers and car manufacturers, whose pricing power was already under pressure after they were targeted last year in a Chinese anti-monopoly investigation.
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