Mercedes-Benz Malaysia (MBM) has started working on implementing an agency model for Mercedes-Benz dealerships in Malaysia, as evident from Hap Seng Consolidated Berhad’s announcement to Bursa Malaysia that it has signed an MOU with MBM to negotiate the new model.
The agency model has already been implemented in parts of Europe (the UK first, Germany next) and it is expected that by the end of 2023, more than half of new Mercedes-Benz models will be sold under the new agency model.
What exactly is the agency model and how does it differ from a dealership model? In Mercedes-Benz’s proposed agency model, the sales contract with the customer will be with Mercedes-Benz, and not the dealership. The dealership will only act as an agent and will be paid a fee for their sales service.
In Europe, the dealers will no longer need to keep inventories, and prices will be fixed between all dealers. This is a “move away from selling the price to selling the car, which should be the case in the premium market,” according to Ola Kallenius, Mercedes-Benz Group chief executive. How it will work in Malaysia is still being finalised.
“Modern technologies and changes in customer behaviour open up new opportunities for the distribution and sales of our vehicles and services. Hence, we continuously review our sales structures and models. With the agency model our retail partners will continue to take on a central role in the customer experience towards a seamless purchasing journey from research to the vehicle handover.
In Malaysia, Mercedes-Benz intends to introduce the agency model before the end of 2023 and are currently evaluating the possibilities together with all of our authorized Mercedes-Benz dealers in Malaysia. Further details will be announced in due time,” says Bettina Plangger, VP of sales & marketing, Mercedes-Benz Cars Malaysia.
Hap Seng Consolidated Berhad’s Hap Seng Star dealership is not the only dealership that Mercedes-Benz Malaysia is in talks with to transition to an agency model. It just so happens that Hap Seng is public listed so it has to be announced. Cycle & Carriage Bintang used to be listed on Bursa but has been delisted and taken private in September 2022.
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hooray now MBB goes MLM way
Maybe I can be your “agent” (aka Broker)
At least they won’t judge walk in customers who want to buy a car and the sales agent just asks u got appointment etc.
What a joke
They don’t even ask! They look at you, ignore, and continue playing with their handphones
Car manufacturers now want to directly sapu rather than having middle man. So no more ability to negotiate a good deal for yourself with the SA. As if prices will go down. And now you have a disinterested 3rd party (former dealership) who can only really make money from after sales service. Sounds like a losing proposition for the dealership networks that have invested time and money over decades to build their brand (this of course is not generally the experience at the consumer end, but for a business this is bad). From a consumer perspective, complaints, defects now all have to go to a global manufacturer. Good luck bringing the law to bear on them in the event you have a claim – cost you $$$. As it is so susah.
If it is ok to link these here, please do: –
https://www.abc.net.au/news/2022-08-04/mercedes-benz-dealers-seek-compensation-over-new-sales-model/101295126
https://www.drive.com.au/news/mercedes-dealers-possibly-misled-on-agency-model-switch/
less dealer commission so sales price will go down?
Price go down? Not with this brand. It’s going up
I guess that means MB would be more “exclusive” because they can set whatever price they want and only loaded customers need apply. Macam iPhone, but way more expensive. Cannot negotiate.
Yep that’s the direction that they are heading to. They don’t mind selling less cars as they want a bigger margin for each vehicle that they sell.
what dealership network?
hup seng or C&C what difference? dealership network means only the big player will sapu all the opportunity.
This will avoid dealer to offer lower price than suggested retail price? Doesn’t sound good for consumer
No more free umbrella, t n go, steering lock, doscount la after this. And no commission on bank hire purchase.
Sound like uber and grab model.
Whatever. With ur dark, sombre interior.
Can I be my own dealer?
Like Tesla – direct dealings. In a way good, deal with the principal directly on any issues. Hope to see better year end sales and promotions.
whatever, volvo best
LoL. Do we expect a cheaper Merzzz ? Enough conning us.
very cheap at germany furthermore uses as taxi
BMW, Volvo or Lexus better than this
Lexus already implement this way of sales on January 2023.
BMW is next. Volvo maybe will not so soon yet
Depends. But BMW in here and others won’t do that, same can be said for Volvo too
Kalau delivery kat kilang @ Pekan Pahang mesti dapat murah
Dgn kualiti murah dan guna plastik material
The Merc is selling so well and sales men do not need to “sell”.
So Merc decided might as well sell direct and cut the commission haha.
toyota with lexus biscuit, mercedes with hapseng biscuit. whatever.
apparently, you guys not listen the story behind
https://paultan.org/2023/05/10/hap-seng-smart-appointed-pro-net-dealer-in-malaysia/
Your comment is unrelated to this news. Sorry bang