BMW Financial Services and BMW South Africa have noted the episode of Carte Blanche broadcast on Sunday evening featuring the collapsed QSG Consult investment scheme.
We are appalled that the QSG Consult matter has affected some of our customers. To the best of our knowledge, out of our national network of 50 dealerships, a limited number of customers from just Melrose Arch Auto signed separate agreements with QSG Consult.
Melrose Arch Auto has since closed down.
The customers in question signed their Offers to Purchase in their full capacity, and also contracted with QSG Consult directly and without the knowledge of BMW South Africa or BMW Financial Services.
The applications for finance were assessed by BMW Financial Services based on the affordability of the customers, and the price of the cars were determined between the dealer and the customer. Two of the customers who entered into the QSG Consult scheme referred the matter to the National Credit Regulator, which in both cases ruled in favour of BMW Financial Services. The regulator found that BMW Financial Services operated within the law and found no evidence of reckless lending.
We have profound sympathy for anyone who has fallen foul of the apparent collapse of QSG Consult. Our brand has also been tarnished by association with this matter. That’s why we did on several occasions offer to meet BMW South Africa’s and BMW Financial Services’ affected customers on the understanding that they would disclose all documents, including those related to the QSG Consult scheme. All but two have declined. Our offer to engage further with affected customers on this basis remains open.
Upon hearing about the QSG Consult scheme, BMW Financial Services wrote to and met with the BMW dealer network to warn dealerships about the apparent scheme and to advise dealers that the scheme was not lawful.
BMW South Africa and BMW Financial Services will co-operate with all law-enforcement agencies. In this regard, we have taken steps to ensure that we comply with the applicable law.
BMW Financial Services and BMW South Africa are separate legal entities to Hyde Park Auto (Pty) Ltd and neither BMW South Africa nor BMW AG had shareholding in either of the Hyde Park Auto dealerships. Neither BMW Financial Services nor BMW South Africa were involved in any alleged arrangements between the dealership and its customers, and any allegations made against BMW Financial Services or BMW South Africa are false, and we consider them to be slanderous and defamatory.
We would like to reiterate that BMW and its subsidiaries are highly committed to good corporate governance. Lawful conduct and fair competition are vital to the long-term business success of the company. They create a basis of trust for our relations with customers and business partners.