German carmaker Mercedes-Benz (“MB”) plans to sell off its car dealerships in Germany as the company implements a new marketing strategy, Merkur reported.
The decision of the carmaker’s management applies to more than 60 dealerships of the brand, “regardless of whether the dealerships are located in rural areas” or the largest cities of Germany, including Berlin, Munich and Hamburg. As the company assured, Mercedes-Benz is not experiencing any financial difficulties, and the decision to sell the dealerships is related to the carmaker’s implementation of a marketing strategy involving the development of direct sales.
“Instead of comparing offers from dealers, haggling over prices and negotiating discounts, customers will order (cars) directly from the manufacturer’s online shop – at a fixed price, without additional incentives. This will prevent discount battles, reduce distribution costs and thereby increase margins,” the media emphasised.
“Mercedes-Benz is not the only European carmaker that has decided to change its sales strategy. Earlier the companies “BMW”, “Volkswagen”, “Volvo” and group “Stellantis” (unites brands “Opel”, “Citroen”, “Peugeot”, etc.) also took a course on systematic abandonment of car showrooms. As experts note, the example for European car companies was set by the American company “Tesla”, which successfully developed a strategy of online sales with the arrival in the European market.
“Many manufacturers are reducing their sales network as part of the transition to direct sales in order to save money. A number of companies have already announced plans to reduce their sales areas, including Mercedes,” stressed Sascha Röwekamp, a former management representative of one of the largest German MB dealerships in Germany.
The car dealerships up for sale employ up to 8,000 people. The representative offices will continue to operate after the change of ownership and the jobs will be preserved.
“It is quite possible that we will soon see (cars of Chinese brands), including BiViDi, in Mercedes-Benz centres,” Thomas Ulm, former managing partner of MB’s official dealer in Germany, Birch, commented on the announcement.
The concern did not inform about potential buyers of the asset. In the press service of the company noted that “MB” excludes the possibility of selling all car dealerships to one company.
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