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Mercedes will reduce the number of dealers and their form of sale to adapt to the times

Mercedes is turning its current brand philosophy on its head. In recent days they have announced that, for the coming years, their idea is to become a more exclusive brand through more expensive access models and a lower entry offer in the range. However, this restructuring will not only be limited to its offered models, but will also go through a regulation of its dealers and points of saleleaving aside the traditional distributor method and focusing on a direct or “agency” sales model.

The star’s German firm conscientiously seeks to obtain greater profitability in each of its sales. This goes through focus on sales and deliveries of high-end cars and electric vehicles, compared to access (such as Class A or Class B) and also to increase their initial prices. However, Mercedes’ plans go one step further, as intend to reduce the number of dealersboth those settled in Germany, and in the rest of the world.

Bliss reduction would be around 15 or 20 percent in Germany, where more places of this type of the world are located; while at a global level said reduction will be around 10 percent. This plan has a clear model in its goal and it is none other than that of increase their sales through the internet, since by the year 2025 they expect these to be made up of 25 percent of the total carried out by the company, while the rest of said awards would be made through the aforementioned method, direct or “agency” sales from that same year.

This new marketing method will be vital for Mercedes in the face of have more direct contact with the client. Currently, dealers position themselves as official distributors of the brand, in which the possibilities of promoting a car at a higher or lower price than another similar establishment are around. In contrast, in the new sales method, Mercedes will have complete control over this and will leave the sales centers as exclusive points of delivery, information and also sales, but with no price flexibility. That is something very similar to what he has been able to implant Tesla in your business method.

The electric models will coexist with those of thermal mechanics until the total change to a completely electric brand
The electric models will coexist with those of thermal mechanics until the total change to a completely electric brand

Currently, Mercedes operates a total of 6,500 points worldwide, while in Germany alone they already have more than 1,000. Bettina Fetzer, vice president of communications and marketing for the brand, warned of the arrival of these cuts, which will take place globally in 2025, while for the German market they will wait until 2028. “We need fewer meeting rooms. large display in established markets. We will move away from this model as soon as we move on to direct sales”, assured the director, who sees the perfect relationship between client and brand in the direct sales method.

As part of this new sales vision, Mercedes will present new exclusive sales points for certain models, such as Maybach, AMG or the recently released Mithos. For its part, The Department of electric cars and electrified, EQ, will continue together with the conventional models, except in the specific cases of the high-end sub-brands mentioned above. These electric variants will have to coexist with the thermal mechanics models until the change towards a 100% electric brand becomes effective, presumably at the end of the decade.

The new sales model will give Mercedes, as a brand, full control over the sales and prices of its models, while at the same time billing directly with the customer. Dealers, for their part, will earn a commission for each model sold or deliveredwhile they can also generate money through the sale of used cars.

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