Auto Dealers in Bangkok, Thailand, Ponder Suit Against BMW.

Nov. 9--Eight BMW dealers nationwide are considering filing a lawsuit against BMW Thailand Co for its recent decision to end their dealership contracts.

Representatives of M-One and Thai Ultimate Car yesterday claimed that BMW had undercut dealers' prices by 9 percent in violation of previous agreements, resulting in financial damage.

But a BMW Thailand spokesman dismissed the allegation, saying that the company had no practice or policy to sell cars directly to customers.

BMW executive Wit Sittivaekin said only a "small number" of cars were sold directly to prominent clients.

"Regardless, deals will be made through the dealers. But whether the discount offered is as much as the two dealers claim I do not know," he said.

Yesterday Jinda Vanichpatanakul, president of M-One Co, and Sompong Phaoenchoke, managing director of Thai Ultimate Car, said that price undercutting was part of efforts by BMW to raise its car sales.

"BMW Thailand has been persisting with the undercutting for nearly a year now," Mr Jinda said.