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.
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…
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
Mercedes-Benz Vans and Rivian have announced a joint venture to produce two large electric vans within two years
Mercedes-Benz will fully disengage from the leasing broker channel next year when the OEM goes to an agency distribution model