Volvo has confirmed that it will be joining Mercedes in switching to full agency model from June onwards – what’s the impact on brokers?
MERCEDES-BENZ, the first major brand to switch from franchised retailing to the agency model, recorded another significant drop in new car registrations in April.
The OEM was down 1,425 units on the same month last year. The fall comes against an overall rise for the month of 11.5% and a company car market rise of around a third.
Mercedes’ monthly unit drop was by far the largest fall.
BROKERS can exist under an agency retailing model, but they will need to form relationships directly with manufacturers rather than being supplied by retailers.
This was one of the messages from a recent conference looking at all aspects of agency.
Speaking at the Auto Retail Network Agency Conference, held in the same month Mercedes launched its new agreement, experts agreed that manufacturers would be able to supply brokers with cars, particularly as supply increases, but they will be disinclined to do so at least in the early stages of an agency agreement rollout.
The MG4 all-electric hatchback has been named UK Car of the Year, the judges praising its fine driving dynamics and good value
Apart from Mercedes continuing to lose sales under agency, the latest figures add to the argument the new car market is returning to a more normal supply-demand situation with fleet registrations growing significantly faster than more profitable private registrations…
Despite all the hype over agency agreements being the route forward for car makers, GWM Ora is opting to sell its cars via a network of franchised retailers. This will be backed up by an online sales system to offer what the brand claims is a true omni-channel approach.As for building a relationship with brokers, Ora will
MERCEDES-BENZ, which started selling cars under the agency model in January, was down more than 20% in a market that saw an overall rise of 14.7%.
The agency move, which has blocked brokers from selling Mercedes cars without going through the brand’s captive finance house, has drawn criticism from consumers on the Mercedes-Benz Facebook page.
While agency is supposed to eliminate consumer’s fear that another buyer may have received a better deal through fixed pricing, Mercedes has also launched a sale offering discounts on selected models
Smart has a new SUV arriving soon. How will it approach the broker fleet market? MD David Browne explains the OEM’s approach: I think brokers have a role. They have strong relationships with companies already, so we’ll tie into that