Introduction of Mercedes-Benz Direct Sales System in April... The headquarters' "final negotiation plan" emerges as a last-minute variable

*This content was translated by AI.

Eleven dealers, including Hansung Motors, will hold last-minute negotiations over the so-called "REF (Retail of the Future)," which Mercedes Benz Korea plans to introduce in mid-April.

Mercedes Benz Korea's direct sales system, which is aimed at eliminating the shortcomings of the so-called "Bentz Street," which was different for each Mercedes dealer and for each purchase period, is being implemented first in 12 countries, including Germany and Australia, and is the first system in Korea in 23 years since Mercedes' launch.

Ahead of the implementation of the direct sales system in mid-April, Mercedes Benz Korea's Mathias Vaitl president expressed optimism, saying, "Customer satisfaction is high and dealer consensus is very high." However, according to this newspaper's report, Mercedes-Benz dealership officials took a more cautious stance, saying, "We will make a decision after looking at Mercedes-Benz Korea's final negotiation plan early next month."

A Mercedes dealer official said, "If we switch to a direct sales system, the sales itself will return to Mercedes Benz Korea and dealers will receive sales allowances. Dealership bears numerous labor costs, including store facilities. "We have no choice but to have a keen sense of touch," he said. "After reviewing Mercedes-Benz Korea's negotiation plan to be released in early March, we will clarify our position again." "We are more cautious as we are attempting to lower dealer incentives at the headquarters level," he added. This is a glimpse of the difference between the dealership and the headquarters.

Dealership has not erased concerns that its role will be curtailed by fundamental changes in its revenue structure. In addition, employment insecurity in sales groups is also looking for a clear alternative. However, the headquarters can shed the stigma of the so-called "Bentz market price" and get an opportunity for major players to specialize in the service sector. In particular, sales positions are expected to change to suit brand characteristics that prefer a more luxurious customized sales method, unlike Tesla, which has previously implemented a direct sales system.

The focus of the negotiations in early March is expected to be the margin structure of the headquarters and dealerships and the improvement of the treatment of sales positions. In particular, unlike previous cases of Tesla, Polestar, and Honda, the industry's interest is rising as it is a shift in the sales method of large importers called Mercedes Benz.

Meanwhile, Mercedes-Benz Korea said, "Negotiations with dealerships are currently underway as planned, and the direct sales system in April is being prepared without any delay or suspension," adding, "This conversion to the direct sales system is purely related to vehicle sales and does not include areas other than after-sales service."

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*This content was translated by AI.