BMW to Shorten Free Service Coverage for U.S. Models

BMW AG will shrink its free routine maintenance plan on vehicles sold in the U.S. to three years and 36,000 miles from four years and 50,000 miles when the 2017 model year begins.

Ludwig Willisch, CEO of BMW operations in North America, tells Automotive News the savings will be used to fund dealer incentives aimed at retaining existing customers. He notes more than half the company’s customers in the U.S. replace their cars after three years.

Willisch tells AN the new dealer plan will focus on return customers because “what counts is loyalty.”