BMW had raised the wholesale price of its new 7 Series models by 2% in January 2002, without changing the cars' recommended retail prices. 14 dealers had embarked on legal action with the support of the German dealer federation ZDK and the national BMW dealer's association, saying the margin per vehicle had been reduced by 11-13%, and accordingly, claiming €631,000 in compensation for lost profits.
The appeal court said that dealers faced with an increased wholesale price had to option to preserve their margins by reducing the amount of discount they offered end-users – a judgment characterised as completely unrealistic by one of the plaintiffs. (Source: autohaus-online.de)
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