Mercedes' agency model was introduced at the request of retailers in response to weak new car profit margins, according to the German brand's UK CEO, Gary Savage.
Before the pandemic, when sales volumes were forced by factories pumping out cars, Mercedes-Benz, in common with almost all manufacturers, chased sales volumes.
Despite its premium image, Mercedes was also one of the biggest discounters, What Car? Target Price data suggests.
Now, the company has more control: of its pricing, its stock levels and more. Despite a tough start, Savage says, the centralised sales process and common pricing structure nationwide are finding approval with retailers and customers.
