Official Dealers - Cutting back numbers

[Roger]

I have just found the web forum - www.mbdealers-speak.com  There has been news of a massive cut back in official dealers and its vitriolic out there.  I would like to hear from someone as to how M-B will make money by cutting the numbers for I understand that the dealers pay a good sum a year for the privilege.  Are there some dealers who would like to comment?

 

[Peter Suggitt]

Official Dealers

The initial reason I heard was that Mercedes wanted to develop larger dealers with more 'clout', and assumed smaller dealers would be shut. This is not correct. Following on from the purchase of the Lex operation to retail second hand vehicles, Mercedes plans to develop a number of new dealers owned by themselves, in the profitable cities. Hence all the dealers in Birmingham would go and Mercedes will have their own operation near the NEC.
Has anyone else heard anything similar?

 

[Andy Langman]

Official Dealers

 I guess the news is out that MB do not intend to cut numbers of outlets but actually increase them.  However they are going to reduce franchise numbers and run them direct.
 Now is this good or bad?
 The good side is MB will be directly responsible for the quality of the showrooms/service bays and the work done.  Also no middleman could make prices cheaper.
 On the bad side there will be no competition between dealers trying to get your business, so MB will have free run to price as they please.
 Good or bad?  My experience of a franchise outfit has not been good, I feel direct MB control will be better, but that is just my opinion.

 

[merky]

Official Dealers

Official word on the dealership issue

Concerned by newspaper articles about the demise of Mercedes dealers Tom Chapman wrote to DaimlerChrysler UK to let them know that he is more than happy with his local dealer who gives him excellent service and to ask why they wished to destroy a lot of small businesses.  He received the following reply and is pleased to share this information.

?This is a delicate matter in that we have made no announcement of our franchising plans and have signed confidentiality agreements with our dealers on this subject.  Unfortunately, uninformed press articles have raised this issue prior to the conclusion of discussions with our dealers and subsequent communication to our customers.  I can assure you, however, that our long-term plans are firmly rooted in having more Mercedes-Benz points of representation than we have today.  Our intentions are to improve our level of customer service and responsiveness and create a more consistent delivery of what our customers expect from our marque.

Apart from the three experience centres we will own in London, Birmingham and Manchester our franchise partners will own all our other franchises.  Further to this we also are increasing our dealership representation from 157 to 175 sites.  Please be assured that once our franchise network changes have been completed it is our intention to provide the same excellent service you already received from Sunningdale Carriage Co Ltd.

I am sorry that I cannot discuss specific dealers but hope you feel assured that our intention is to ensure continued coverage across the whole of the UK for sales, aftersales and other customer services.  Our actions, which will be advised to you in due course, are for the benefit of the Mercedes-Benz marque and that benefit starts with the customer.

Dermot Kelly
Director Passenger Cars

 

[Neil Eglintine]

Official Dealers

I guess that in the long run, this will mean a number of existing franchisees losing the three pointed star. That could mean an increase in the number of independant Merc specialists!

This might not be too bad for those of us running older cars on a budget.