BMW Group Australia has sold its factory-owned flagship dealership in Sydney’s exclusive Rushcutters Bay, in which it spent $64 million in renovations just four years ago.
After operating the retail business as a factory-store for 34 years, the BMW Sydney and Mini Garage Sydney company-owned dealership has been sold to the Australian Motor Group for an undisclosed price. The handover will take effect from the end of this year.
BMW Australia said in a statement that it “continuously analyses its business operations and has made a strategic decision to shift its focus away from owning a retail outlet in Sydney and to sell it to the Australian Motor Group, one of its dealers within its retail network.”
“Currently, BMW Group is represented by independent investors who collectively own 48 dealerships across Australia.
“The sale of the business to an existing authorised BMW Group dealer partner underscores the strength of the network in the country and reflects BMW Group Australia’s confidence in its sustained performance, growth, and development.
“The acquisition includes the transfer of all skilled dealership workforce to the Australian Motor Group, ensuring a seamless transition for both employees and customers.”
BMW Group Australia CEO Wolfgang Buechel said: “The Australian Motor Group has a proven track record of excellence and their unwavering commitment to customer satisfaction and business innovation align seamlessly with BMW Group’s values.
“Our dealers remain the backbone of our retail business, so we are excited about this strategic move that will strengthen our relationship with our dealership network in the Australian market.
“We are confident that under their stewardship, the dealership will continue to thrive, offering an exceptional working environment for staff and delivering high-quality service to our valued customers.”
BMW Group APAC, Eastern Europe, Middle East and Africa senior vice president Jean-Philippe Parrain said the move would strengthen the car-maker’s relationship with its dealer network.
“We are confident that this new chapter in the history of BMW Sydney and Mini Garage Sydney will lead to mutually beneficial outcomes,” he said.
Australian Motor Group is a well-established family-owned business in Australia with a portfolio of 25 dealerships across 13 renowned brands.
It owns Hornsby BMW which won the overall BMW Dealer of the Year Award in 2020 and achieved the prestigious BMW Metro Dealer of the Year accolade in both 2021 and 2022.
From January to September 2023, Hornsby BMW experienced a positive sales growth of 5.56 per cent compared to the same period last year.
AMG founder and owner Mark Fitzgerald said in a statement that the acquisition “of this dealership with its rich heritage and strong reputation, will strengthen our dealership network and expand our presence with the BMW Group brands.
“We look forward to building on this legacy with the highly trained team and providing exceptional service to our guests.”
The acquisition comes four years after BMW re-opened its Rushcutters Bay dealership after one of the nation’s most expensive renovations, spending about $65 million on the building.
At the time, BMW Australia’s chief executive Vikram Pawah told GoAutoNews Premium that the company believed the move was in line with giving customers the best service possible.
He said that ongoing growth in sales and product range led to the redevelopment.
“In 1994, the original BMW Sydney dealership underwent significant changes to accommodate the BMW brand,” he said in 2019.
“Since then, the business has expanded across all areas – the BMW and Mini products and service portfolio has grown substantially, sales have increased and the demand for service and parts has increased considerably.
“It’s not only a showroom that we have redeveloped. It is the destination for our customers and for brand aficionados with multiple customer touchpoints that define the BMW and Mini brands.”
The new dealership, which took five years of planning followed by a build time of two years, opened to coincide with BMW Group Australia’s 40th anniversary and the launch of a new model line-up that included the X7, 3 Series, 7 Series, 8 Series and Z4.