BMW Offers Apology Over Auto Show Ice Cream Scandal

This auto giant’s going to a need a bigger ice cream budget going forward.

It’s not every day you hear the terms “BMW” and “ice cream scandal” in the same sentence, but that’s where the Germany-based auto manufacturer and its Mini China affiliate found themselves last week.

The automaker is scooping to avoid a scandal after being accused of favoring non-native attendees in handing out free ice cream at a Shanghai auto show.

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The episode drew massive social media attention in China after videos appeared to show BMW  (BMWYY)  trade show staff dishing some free frozen treats to Western-trade show attendees, but not to Chinese locals.

The most widely circulated video showed a Mini China trade show staffer denying two Chinese locals some ice cream. The streaming video showed that, moments later, the same staffer handing ice cream over to a Western male.

Chinese Social Media Attacks BMW

That didn’t sit well with Chinese social media, where users lambasted BMW for its apparent discrimination in the ice cream caper. Over 530 million users chimed in on the incident on social media as of April 21.

Mini China, which is BMW’s Chinese Weibo account, responded immediately with an apology. “Because of our sloppy internal management and the dereliction of duty by our staff, we have caused unpleasant feelings for everyone,” Mini China said, as reported by CNN. “We sincerely apologize for that.” 

The company added it would “improve training.”

A second statement from Mini China noted the company only had limited ice cream reserves and that employees, including the Westerner, included in the video, had first dibs. Only minutes later, the company said, it had run out of ice cream.

For its part, BMW is taking a step back from the ice cream ladle and sticking to its long-term script

"We feel at home here in China. The growth and success of BMW in the country have created prosperity in both China and Germany," Oliver Zipse, chairman of BMW AG's board of management, told the press ahead of the auto show, which started on April 18 and runs through April 27.

But BMW shouldn’t step back too far, as the ice cream incident could leave China auto buyers cold.

BMW Ice Cream Snub Could Cool Chinese Consumers 

"China is one of BMW's most important markets. This incident could erode consumers' affection toward BMW and might further lead to investors' decisions to sell BMW stakes," Yang Delong, chief economist with First Seafront Fund, told Economic View, a financial media outlet of China News Service.

In its most recent quarter, BMW sold 194,000 vehicles in China, and is looking to expand its presence in the world’s largest economy.

A few extra tubs of ice cream may help on that front.