Mercedes-Benz is overhauling its sales network throughout Germany and Europe as it moves towards more direct sales.
Executives from the car manufacturer have confirmed that it will cut 15 to 20 per cent of its dealerships through its home market and approximately 10 per cent globally. This comes as part of a plan to hit 25 per cent online sales by 2025 and securing 80 per cent of European sales through its direct sales or ‘agency’ model by 2025.
“We want to have more proximity to the customer and therefore have better control over pricing,” Mercedes chief financial officer Harald Wilhelmn recently said. “That’s why we are moving from the current dealer role.”currently operates approximately 6,500 Mercedes and Smart sales and service outlets worldwide, of which roughly 1,000 are located in Germany.
Mercedes-Benz’s agency model will see the carmaker itself own dealer stock and invoice customers directly. Dealerships are then tasked with delivering vehicles and receive a commission on every model sold. They can also generate money through after sales.
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