Mercedes-Benz Australia Pacific Ltd (MBAuP) has told its 60 Australian dealers that they have until close of business on September 17, 2021, to sign up to its new agency sales contract.
Drive reports that MBAuP and its dealer network have been in negotiations over the move to the agency model for more than three years.
The dealerships have already been retailing the all-electric Mercedes-Benz EQC400 models under an agency agreement, whereupon Mercedes-Benz retains ownership of the vehicle before the sale, and then gives the dealer a set fee when the deal is completed, and the customer takes delivery of the car.
It is the same business model recently employed by Honda Australia as it restructured its national network, and the New Zealand national sale companies for the Toyota and Honda brands also employ the agency model.
Drive reports that a newly revised version of the dealer agreement was sent out by MBAuP to the dealer network on September 13 giving the network five days to sign it.
This followed a marathon mediation session between the German manufacturer and representatives from the dealer network last week which was the second time the two parties had meet to conduct negotiations since the first round of dealer contracts were issued in July 2021.
Drive understands that some Mercedes-Benz dealers have been pleased with the revised dealership agreement while others are signing reluctantly.
A Mercedes-Benz Australia spokesperson contacted by Drive declined to make any comment regarding the negotiations.
Join the conversation