Marque launches agency model
Mercedes-Benz has officially launched its fixed-price agency model in New Zealand which wipes out the negotiation phase for buyers and means dealers will receive a set fee for each vehicle sold.
The company has dropped its previous dealership model and is now using an agency system where the distributor sets the retail price of vehicles and retains ownership of stock.
Dealerships have had to change their contracts with Mercedes-Benz New Zealand as a result and there are 22 retailers acting as agents for the marque.
Its agency model has already been introduced in Sweden, South Africa and Austria. It was also launched in Australia in January but has attracted controversy there with 38 dealers taking legal action against Mercedes-Benz in the Federal Court seeking compensation of NZ$700 million.
The company’s New Zealand website outlines the main changes to its business operations under what it calls an “enhanced ownership experience”.
“We’ve introduced pricing certainty to give you the assurance that once you have found the Mercedes-Benz of your dreams, no matter where you buy it, there will be no better offer in the country at that moment in time,” it explains.
“All of our agents have access to the same stock, so you will now be able to choose the Mercedes-Benz that’s right for you from our entire stock pool nationwide, regardless of where you choose to purchase the vehicle.”
Mercedes-Benz NZ has announced it also plans to open an online store this year.
The marque joins Honda and Toyota as those operating under an agency model in New Zealand.
