Horst von Sanden

MERCEDES-BENZ Australia/Pacific CEO Horst von Sanden says the company is not planning any further dealer expansion in Australia or New Zealand at the moment.

Mr von Sanden told GoAutoNews Premium this week that he was “extremely happy” with the Australian and New Zealand retail network.

“They have supported us and we have certainly tried to support them,” he said.

“They can’t complain about the excellent product and we can’t complain about their commitment and investment.

“We are not having plans for any dealer expansion in Australia or New Zealand at the moment. The way we are covers all our needs and we can service our customers properly and that’s the key. NZ is also well covered.”

Business confidence “a concern”.

Mr von Sanden said that although the dealers were performing well, he was concerned with the lagging business confidence in Australia.

He said confidence was “not strong” at the moment, mainly on the back of instability in the housing market.

“We are impacted by a lot of things,” he said.

“Housing prices is one of them. Another is the trade tariff issue with the US and China that impact on our production facilities in the US.

“The luxury-car market is also challenging but the good news is that it can turn around, and sometimes quite quickly.

“We are confident that the luxury market is still strong. I see that fluctuating demand for housing is an issue to buyer confidence but I think it is a correction and that there will not be a steep decline in the economy.

“We are not in crisis mode.”

By Neil Dowling