UK dealers representing BMW Group's five brands have been warned they must accept change, including the influence of the internet.

Gabriele Falco, group regional managing director responsible for UK sales of BMW, Rover, Land Rover, Mini and MG, said: “We must adapt to new ways of distributing cars and we have to focus on customer relations rather than the performance of our cars. BMW will invest more money to move closer to its customers whose expectations are rising.”

Mr Falco said he wanted his dealers to think about new ventures such as offering overnight servicing of vehicles that people needed to use during the day.

Mr Falco rejected speculation that BMW might build its new Rolls-Royce plant in Germany, saying that one of five possible sites in England would be chosen by early May. BMW is scheduled to secure the rights to the marque on January 1, 2003.