Dealers; Do we need them? Big or Small? - What do you like a

[MBmoderator]

MBUK (DCUK) want to cut costs by cutting the number of "points of representation" by 50%-60% for them. That means that they are going to a "Hub & Spoke" idea, where they will appoint one (hub)dealer in an area where there were previously several, and he will control it with "spokes" (they used to be called satellites, but since some of these "Spokes" areas will sell hundreds of cars, a new name was conjured up) For DCUK it means big savings in field staff, since they will only deal with the Hub Dealer, leaving him to sort out his Spoke operations. For the customer it will mean Mega Dealers in big towns (not necessarily the obvious big town though, as DC have strange ideas about which towns hould be Hubs) and outpost Dealers around them.  And even less chance of seeing "the man from the factory" than now.
I'm wondering how much value Mercedes Owners put on being able to go in and speak to the person who owns the business, as compared with a Lex-style branch manager? It will be more like going to McDonalds as compared with going to a restaurant.
I know that for alot of people price is the main item, yet it can't be or we wouldn't be driving Mercs to begin with.
DCUK espouse customer satisfaction, and compell their Dealers to achieve high standards (compell for a few, normal for most) which are very expensive. They won't spend as freely when it's their own money, so something will suffer, but as long as MB get more volume, they will be happy.
MBUK used to be concerned with the quality of the product, and customer satisfaction. They're moving to the mainstream obsession with volume, and volume. If they didn't make such ****** good cars, they would not last 2 years as a company. Lets hope the quality of the product doesn't slip with the volume obsession.
What do you think?

 

[Will]

Dealers; Do we need them? Big or Small?

It would appear that they are adopting a cost leadership strategy, by removing localised dealerships they will be removing the service elements that have made them the premier supplier of executive cars. Is this why they have developed the A class (which I hear has driven down the image of Merc, not help by the fact the have teamed up with a budget supplier Easy Rent a Car, is this really enhancing their image?) This coupled with the development of the Smart Car ? I reckon they?ll be rebadging this as a Mercedes before to long and where will they be then (a Skoda in reverse). Do Mercedes believe that there is no placed for high quality, high service, technologically advanced premium cars?

Maybe they should create a Joint Venture with someone like McDonalds so when you buy a burger you could also buy a Merc and when you?ve had enough you throw it in the bin!

 

[Anonymous]

Dealers; Do we need them? Big or Small?

I have been watching financial press reports on the above restructuring of MBUK dealerships which,as the above post suggests, is based on a volume sales strategy.To an element of private enthusiasts it is most concerning because it will inevitably lead to a lowering of standards probably across the spectrum.
I understand that MB are not alone in this policy adoption & that it is being actively considered by other major manufacturers.
Current deterioration in paintwork, trim & underbody fairings leave me to believe that future quality standards will progressively lower.
I am reluctantly now reviewing other manufacturers products.

 

[Andy]

Dealers; Do we need them? Big or Small?

The restructuring of the MB network, I have watched with interest. Having come from a large dealer, having watched the brand change over the last 23yrs. I will admit, you wonder have they lost the plot! You can see what they are trying to do when cherry picking the prime sites. But the reason they are in such a strong position is due the product they produce and the large amount of dealerships they have around the country. The point of having these dealerships as I see it is so you have localised expertise in that part of the country. We as human beings are funny. We like to talk to like. So a Yorkshire man likes talking to a Yorkshire man and not a Londoner and vice versa. This is where they will fall foul. Also if a customer has to travel to get to a dealer to purchase a vehicle and passes a BMW, Audi, Jaguar etc dealership which is closer and is not going down the same road as MB. Then he or she is going to pop in and have a look. The product these manufacturers are producing are closing the gap. The gap is still there, but will the customer travel excessively to purchase or service his vehicle? I think not sooner or later there will be an erosion of the customer loyalty that has brought this country to the 3rd largest market for their vehicles. So you would think they should listen, shouldn't they? Time will tell!!!

As for the quality of the product they are producing. It has to be said it has gone done in my humble opinion. But also it has gone up and so has our expectation. They are up against enviormental issuses, which determin some of the products which are used which might not be there first choice, and also do not last as long. Paint work is now water based. Problem is that its not as durable.

The wage issue, more of the vehicles are being built else where. All have an impact on a company having to survive in a market getting smaller. Remember there are too many vehicles being produced. Something some where has to give!

When the M class first being built in America they had huge problems with workmanship. Which they have or are overcoming. The same with the Vito's.

It sounds as if I making excuses for them. I am not. But these sort of issues have to be taken into account in any business.

The one thing you have to say about the vehicles(jury's still out on the management here or in Germany) sooner or later they get that vehicle right.

They still are the best at what they do and are still rewriting the way manufacturers make vehicles. The A class technically class leading when first developed. Much has been said about its crumple zone.

Some have mentioned the smart car. Again this little vehicle is amazing in design. Again rewriting the way they make vehicles.

I will say though. Something which was pointed out to me a while ago. If they make something small. The next version gets bigger. IE. Look at the new version of the A class. 123-124-210, 116-126-140(Although they were forced to rethink the new S class size. 190-202,

There has been some good partnerships. Look what AMG has brought to the brand. That at one time was just an "old mans car". I remember when if you had a AMG conversion you would invalidate your warranty. Look at them now!

Time will tell if there right or wrong in the current dealings. Although I think there is a lot more at stake now!
I hope I at least given some food for thought.

 

[Anonymous]

Dealers; Do we need them? Big or Small?

To me, the main issue when buying our A Class was the warrantee.  So far, our one problem (Stuck electric window) has been dealt with sort of okay.  The Mobilo man on the phone didn't offer us a fix other than take it into a dealer, but the dealer showed me how to 'reset' the computer controlling the windows.  But if the MB dealer is miles away and Ford/VW etc is just around the corner, maybe we'll reconsider in a couple of years.  

I don't mind having to travel miles to buy the thing, but will object if we have long trip every time the car gets serviced/needs looking at.  

The dealers just don't seem to have the answers at the moment.  Two I went to two dealers and both seem to be loosing the MB dealership while Woking Motors seem to be staying - 'Their words'  So we bought from Woking Motors, but it's a bit of a hike to get there.  The sooner the court case is resolved the better - I doesn't inspire a lot of confidence does it?

Neil

 

[Dave B]

Dealers; Do we need them? Big or Small?

It's begun......I've resurrected this thread as I received word for Daimler Chrysler UK this morning that a new stealership - Mercedes Benz Bolton - became the new "authorised" retailer for the Bolton and Wigan area.  This replaces HL Gorner who had their main stealership based in Wigan and were the NW centre for any Mobilo work e.g. if your MB had to be recovered under Mobilo this is where it ended up.

Now Bolton is probably some 20-30 miles from me, and previously I had more local stealerships at Warrington (HL Gorner), Liverpool and Chester (both of the Road Range chain).  I've yet to contact Road Range to check on thier status.

DC's Bolton setup now promises a larger showroom (whoopee-doo!), a dedicated used vehicle sales area and a comprehensive service operation.

Has anyone else experienced similar changes in their areas and if so what do you make of them ????

 

[rpalmeida]

Dealers; Do we need them? Big or Small?

When MB started this, I wrote to MB UK telling them what I thought (ie, they were ****ing off their own dealer's staff (as they didnt know what was happening) and this would inevitably have an effect on service quality..

I got a nice reply from Dermot Kelly himself, not telling me a lot, but from that letter and chats with my local dealership (which was Sunningdale, forced to sell out to Greenoaks) what seems to be happening is this :-

In 3 major cities (London, Birmingham,Manchester) MB will own all the dealers (London meaning inside the M25 - so this *will* affect Woking Motors).

Outside of London they will be consolodating dealers into larger dealers. For instance, Greenoaks now own Slough, What was Sunningdale, and what ever was in Maidenhead) - this gives them the ability to run more small showrooms (to catch those people driving past) and to centralise the service. For instance, in the old "Sunningdale Carriage Co" area, there is now a workshop/sales centre in Bracknell and a sales centre in Ascot.

AFAIK, any MB dealer Ive ever talked to will always do collect & deliver when servicing - so you dont have to even leave home. This of course means that the strategy of more sales showrooms and "collect and deliver" servicing will mean that you will be more likely to pass a MB dealer and buy a car .. in theory.

As to the bad side, IMHO the staff of Sunningdale Carriage Co were treated really badly by DCUK - Sunningdale lost its franchise, and it was only days before it ran out that they actually sorted out the fact where the staff would be working (i.e Greenoaks were buying it and it would be in Ascot , with servicing from Slough until Bracknell was re-furbed 3 months later). The servicing staff then seem to have ended up in an over-crowded Slough service centre, and net result is some of the most experienced people have moved on ..

R

 

[Malcolm Brown]

Dealers; Do we need them? Big or Small?

A quick comment from someone for whom warranty does not apply!

I use an independent Merc specialist and do a bit of work myself. My concerns are, if my local stealership closes:

- accessibility of parts

- hanging around on the independent guy's waiting list as he inevitably becomes much busier