Horst von Sanden

AN AGENCY-STYLE dealer network, similar to the Drive Happy program of Toyota New Zealand, could be on the cards for Mercedes-Benz in Australia, but its local chief said it was only one of a number of ideas now being considered for dealerships of the future.

Mercedes-Benz Australia/Pacific CEO Horst von Sanden said there were “pros and cons” with the agency dealership model and confirmed that the concept was still one of the options being investigated.

“We do discuss broadly a topic we term ‘retailing of the future’,” he told GoAutoNews Premium at the launch of the updated C-Class range this week.

“We are fully aware that automotive retailing in a few years from now will not look the same.

“We are aware of disruptors coming in (that will be) trying to take over certain parts of the industry and the situation of our retailers can become very challenging.

Mercedes-Benz C-Class

“We feel obliged to work with our dealers and prepare them for whatever future changes occur.”

Mr von Sanden said the agency model was only one concept being discussed within the OEM and dealer businesses.

“We have discussed everything from ‘what if we do nothing and wait’ – which is not a good option – to very extreme options such as the agency model,” he said.

“There is no decision and there are many options. The important thing is that we join with our retail network to find the right changes.

“This is not about change for the sake of change or something we would do without the support of our network. The goal is to build a sustainable future for the retailers.”

He said there were “pros and cons with the agency system”.

“I can’t tell you if it is something that should be seriously considered because it has to be taken into consideration with other factors.

“It has some advantages but then it has certain disadvantages. At the moment we are open minded.

“The objective is very clear in that we want to build a sustainable model. There is not one thing that we have seen so far that makes us say ‘this is it’.”

Mr von Sanden said the investigation process was still in its early days.

“I initially thought there could be a quick decision but the topic is very complex.

“We need to be careful because our dealers have invested enormous amounts of money into their businesses and have done everything to represent our brand correctly so I think we owe it to them in a responsible manner.”

By Neil Dowling

Image: Google