Mercedes abandons dealerships

Mercedes abandons dealerships

FineAuto

The German brand Mercedes is preparing a new format for its network in 2023. The innovation will first appear in Germany and then spread throughout Europe, including Spain. Dealerships will be transformed into manufacturer agencies, this approach will reduce costs and increase profits.

Global changes await the traditional concept of Mercedes dealership. The brand plans to introduce the new model from 2023. All official distributors will be converted to agencies.

If now, when a client buys a new car, the dealer orders a car from the factory, then transportation is carried out, while the documents remain in the bank until the purchase is paid. The dealer immediately transfers the received amount to the brand. A similar transaction occurs between two parties, it has a margin of 13%, this affects the retail prices of various dealers.

If one of the models was not sold due to lack of attractiveness, the company offers special discounts. The new agencies will work in a different way. Prices and discounts will be controlled by the manufacturer himself for all equally. The purchased cars will belong to Mercedes until the buyer pays for them. Commission is introduced for each unit sold to agencies.

Dealers will continue to earn their share of the after-sales service, while at the same time, they will avoid ordering completely new pieces of equipment at the request of customers, which for some reason cannot be delivered to customers.

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