MERCEDES-BENZ

German automaker wants to follow Tesla's sales lead

Automaker executives confirmed that the concern will cut 15 to 20% of its dealerships in the domestic market and by about 10% globally. This is part of a plan to achieve 25% of online sales by 2025 and 80% of sales in Europe through direct selling or the "agent" model by 2025.

“We want to be closer to the customer and therefore have better control over prices. That's why we're moving away from our current role as a dealer," Mercedes CFO Harald Wilhelm recently said.

Mercedes-Benz currently operates around 6,500 Mercedes and Smart sales and service centers worldwide, of which approximately 1,000 are located in Germany. Vice President of Communications and Marketing Bettina Fetzer said that the reduction of the presence in Germany will occur until 2028, and the global one until 2025. The concern will move away from the big showrooms, mainly when moving to direct sales. All these efforts give the company a competitive edge. As part of the transition to direct selling, several of the company's brands will have special outlets. For example, Maybach and AMG specialty stores will emerge. Mercedes is already changing its dealership approach a lot and in 2021 it deployed 25 of its dealerships in the European Union.

The Mercedes-Benz agency model directly involves billing the automaker's customers. Dealers will be tasked with delivering cars and earning a commission for each model sold. They can also earn money through after-sales service.

Subject already discussed exclusively on this blog last: year:https://www.blogger.com/blog/post/edit/preview/27714316413112798/600126849935010084

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