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Mercedes-Benz Moves to a New Sales Model in Europe, Dealers Will Be Compensated

Mercedes-Benz will move to a new sales model in Europe after an agreement with the dealer's association was drafted on Friday. Dubbed the “agency model,” the new direct sales model will allow customers to buy cars directly from Mercedes, while the dealers will receive compensations for the profit loss.
Mercedes-Benz Moves to a New Sales Model in Europe 12 photos
Photo: Mercedes-Benz
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The process of buying a new car usually requires going to a dealer and signing up a contract for the new car. All the traditional automakers operate in this way, with the notable exception of Tesla. The EV producer has no dealer network and thus sells its cars directly, through its website. Now, it appears Mercedes-Benz wants to do the same, at least in Europe.

The German carmaker announced a deal with its European dealer association (FEAC, Fédération Européenne des Amicales de Concessionnaires Mercedes-Benz) to implement the so-called agency sales model in Europe for the company’s cars and vans. The new direct sales model has already been tested in Sweden and Austria and will see a pan-European roll-out, with Germany and UK following in 2023.

The new model is more in line with customers’ changing needs in a digital world and is expected to ensure stronger customer loyalty to the brand. According to Britta Seeger, Member of the Board of Management of Daimler AG and Mercedes-Benz AG, responsible for sales, more than half of Mercedes Benz cars available in Europe will be sold under the agency model by 2023.

Thanks to this agreement and the new sales model, those who want to buy a Mercedes-Benz vehicle will have more options. They can still go to a dealer to consult product experts or see the cars and even complete the purchase traditionally. Alternatively, they can obtain information and conclude the purchase contract online, without physical interaction.

Besides more choices, customers will benefit from a more transparent pricing policy and a greater online selection of vehicles. At the same time, the dealers included in the agency model partnership will be able to concentrate on customers’ support.

Of course, the new model means the dealers will miss some business opportunities since the customer buys the car from Mercedes-Benz. Under the new agreement, the German automaker will compensate the dealers for the cars it sells directly.
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About the author: Cristian Agatie
Cristian Agatie profile photo

After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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