Daimler CEO Ola Kallenius mentioned the automaker is planning to develop the “company” promoting mannequin in quite a few European international locations, as half of a bigger plan to streamline and digitalize the gross sales and distribution course of.
In an interview with Automotive Information Europe, Kallenius mentioned the mannequin, by which the automaker units the transaction worth and pays the seller for every automobile bought, helps cut back gross sales “friction” and makes it simpler for patrons to merge the net expertise with real-world showroom visits.
“With the company mannequin, the automobile sellers develop into buyer expertise and supply brokers and thus can focus much more on guaranteeing a superior buyer journey, from product exploration to handover,” he mentioned.
The present system depends on sellers shopping for autos wholesale and marking them up for retail, an association that offers sellers extra management over pricing.
The brand new approach of promoting automobiles has began to achieve traction throughout Europe, in line with a December 2020 survey by Capgemini.
Kallenius mentioned Mercedes-Benz had acquired optimistic suggestions from company mannequin pilot initiatives in Sweden and South Africa. He mentioned the corporate plans to place the mannequin in place formally in quite a few markets in Europe and Australia.
“Whereas now we have not communicated precisely which markets shall be subsequent, it’s only pure that we proceed with different international locations in Europe, together with some massive markets,” he mentioned. “That may occur throughout the subsequent few years.”
Volkswagen has already rolled out the company mannequin to its sellers in Germany and Austria for its ID3 full-electric automobile, BMW now makes use of it in South Africa, and Honda and Toyota use it in New Zealand.
Kallenius acknowledged that franchise legal guidelines in america usually prohibited use of the company mannequin, however he mentioned he was wanting ahead to working with Mercedes sellers there to find out what the way forward for automotive gross sales in America would appear to be.
“Many states have franchise legal guidelines they usually should be revered,” he mentioned, ”however that does not imply we can’t sit down with a enterprise accomplice to debate creating experiences which might be even higher for the client.”
“If we will take friction out of that have, we’ll accomplish that,” Kallenius added.
Kallenius mentioned the company strategy matches in with Daimler’s general efforts to digitalize its enterprise and distribution mannequin.
“I am a really robust believer that every thing that’s transactional in terms of automobile gross sales and distribution must be digitized,” he mentioned. “This removes friction, improves the client expertise and lowers prices. So, no matter which gross sales mannequin we contractually select, we’re on the trail towards a totally digitized transaction.”
A recent study by Roland Berger discovered that the company mannequin may cut back distribution prices by 1 to 2 % within the brief time period and as much as 10 % in the long run.
He mentioned he acknowledged the significance of the bodily gross sales expertise for a luxurious model, which nonetheless wants to supply clients the chance to talk on to professional salespeople.
“In order for you a take a look at drive, it must be made obtainable,” Kallenius mentioned. “With this mannequin you continue to showcase the product, however you’re taking away the friction in the course of the transaction, which is one thing that almost all clients do not stay up for.”