Mercedes Will Pay European Dealers for Every Car It Sells

Mercedes Will Pay European Dealers for Every Car It Sells

So far, the initial feedback has been positive.

Daimler is likely to be considered one the legacy automakers who are restructuring their businesses in order to transition to an electrified ( eventually ) autonomous era. Recently, Mercedes-Benz announced that it would accelerate the adoption of electric powertrains to reduce the need for combustion engines. Daimler may also be considering making changes in the way it sells cars.

Automotive News had the opportunity to talk with Ola Kallenius, CEO of Daimler about many topics. The company’s chief honcho revealed that Daimler is currently working on a new way to sell cars. In this system, the automaker determines the price and pays the dealer for each vehicle sold.

Mercedes Will Pay European Dealers for Every Car It Sells

As an experiment, the so-called “agency selling model” could be used in some European markets. It could be part of a wider strategy to streamline and optimize sales and distribution. If it succeeds, it will become a part. Kallenius claims that this could decrease friction between the automaker’s dealers and the manufacturer. This could make online shopping more like a real-world transaction with a dealer.

Kallenius explained that the agency model allows car dealers to become customer experience and delivery agents, and can thus focus more on customer service and product exploration. He also said that Mercedes received positive feedback from pilot projects with agency models in South Africa and Sweden.

Kallenius said, “While we haven’t communicated which markets will follow, it is only natural we continue with other European countries, including some large markets.” “That will occur within the next few decades.”