To better understand what is currently happening at Mercedes, let’s start with a reminder how car distribution works. There are three main channels through which a car manufacturer can sell its cars: through own distribution subsidiary (former department), prov independent dealersor through brand agents. This is what, in general, distinguishes them.

Subsidiary, Dealer, Agent: What’s the Difference?

• A subsidiary of the manufacturer : is a company directly owned by the car manufacturer and acts as a direct extension of the parent companyindependently responsible for the sale, distribution and after-sales service of their vehicles.
• Independent dealer : This is a separate company, owned by private entrepreneurs, which concluded an agreement with the car manufacturer on the sale of its cars. They are responsible for the sale, maintenance, and sometimes repair of cars of this brand. They have greater flexibility in managing their operations (discounts, special conditions) ever sincethey buy the car from the manufacturerbut they must respect his standards and guidelines.
• Brand agent : It is an intermediary between the car manufacturer and the customers. Unlike dealers, brand agents do not directly purchase the vehicles they sell. They are resellers and can work for several different brands. They are paid as commissions from sales.

Here, in general, is what everyone does. Now back to Mercedes-Benz…

Mercedes will sell 80 German sales points

The brand is in the process of “branching out” as it was previously used: it sells its own subsidiaries (Mercedes-Benz Retail) switch to an independent distribution method (dealers and brand agents). It is not the only one: more and more car manufacturers (Renault, Stellantis, Volkswagen, etc.) are doing this to get back the cash tied up in the land (showroom, workshop, etc.) and in the vehicles in stock. , immobilized in dealerships and which lose their residual value over time.

According to the German daily Handelsblatt, the brand will be on the verge of selling 80 points of sale in Germany, hope to get 20 to 40 million euros on each. He will therefore negotiate with the dealer groups for the return of these points of sale (French groups may be among the selected players). In France, Mercedes-Benz Retail owns only “Mercedes-Benz Paris”, a group of dealerships in Paris Longchamp, Paris Port d’Orleans, Boulogne-Billancourt, Colombes-La-Défense, Rueil-Malmaison and Le Porte-Marly…

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