Mercedes could go towards the cut by some of its dealers, in a radical change of attitude towards direct and online sales. The plan that will change the distribution system of the House of the Three-pointed Star should lead to a initial cost savings especially in Germany.
According to reports Automotive News, 10% of dealers worldwide will be cut, and 15-20% in Germany. The manufacturer essentially believes that in markets where it has already been present for decades, a presence like the current one is not necessary, because they are considered ‘mature’. In such countries, particularly in Europe, large showrooms could be replaced by online or direct consultants, ‘agency’ stylecapable of reproducing a substantially similar sales experience.
Substantially Mercedes will become thedirect sales agent, keeping ownership of the stock and the financing system, while the dealer takes care of delivering the car and managing the after-sales treatment, earning a commission. Other brands are switching to this solution, which offers greater control over a large part of the sales chain: Volkswagen, Stellantis, BMW.
The objectives? 25% of sales in Europe through online systems by 2025, 80% for total direct sales. At the end of this process Mercedes should be, according to the plans of the management, on an even higher level in terms of prices sales, with the advantage of not having to deal with different physical dealers anymore. The strategy has as its arrival point 2028, the year in which effectively the number of dealers present in Europe should have been reduced, to the advantage of direct or digital sales systems.
The situation is different in China, where Mercedes dealers are currently on the rise. Indeed, the impact of the reduction in showrooms is expected to be exclusive to the nations traditionally at the heart of Mercedes-Benz sales, while China is a relatively new territory in which to operate.
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