Mercedes Builds $220 million US Dealership

Mercedes today confirmed that it plans to build a new dealership in Manhattan, based on the same design standard all dealers around the world have to meet. According to Autonews, Mercedes' new 330,000-square feet store will cost the German car maker no less than $220 million and is due to open in the first months of 2011. More importantly, the new building provides a more accessible location to all Mercedes clients, away from traffic jams but easily reachable from the Lincoln Tunnel, Ernst Lieb, CEO of Mercedes-Benz USA was quoted as saying by the aforementioned source.

Although Mercedes' current US store (which by the way is the only one owned by the German carmaker in the United States) does not sell Maybach, the new dealership will distribute Maybach, Mercedes-Benz and smart models, Lieb confirmed.

What's interesting is that Mercedes sees the new investment as a significant example for all authorized dealerships that are now required to upgrade to the Mercedes-Benz standard design.

"We are offering dealers incentives for investment in a three-year program, and we've been asked many times 'What are you doing about your own store?' We are putting our money where our mouth is. We have to play by the same rules we are applying to our dealers,” Lieb explained.

Although the current Mercedes store sold no less than 2,652 new cars last year, the German carmaker set a goal of 2,500 sold units annually for the new dealership. In addition, it will also provide a larger service area, plus an expanded showroom and other facilities, Mercedes' official said. And beside all of these, approximately 900 apartments will be built above the showroom, with Mercedes owning a share in all of them.