Mercedes Benz launched five vehicles last year, tried to beat BMW for the No. 1 luxury brand title, fired its CEO after alleging ethics violations and appointed the aOlernKienOP
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And those were just the highlights. The brand also added a C class coupe and promised dealers more C class variants to make the range truly competitive against the BMW 3 series.
But profits continue to be an area of concern, and dealers have launched a study to find ways to make their returns as good as those of Lexus, BMW and Audi dealers, said Michael Cantanucci, chairman of the Mercedes Benz Dealer Board and owner of three Mercedes Benz stores in Connecticut and Florida.
Staff Reporter Diana T. Kurylko spoke with Cantanucci.
How was 2011 for Mercedes Benz dealers?
It was a very good year. Sales volume was up. Power major syndicated studies. Market share is still increasing to the highest level ever.
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I don’t know if the word issues is one I would choose; I’d say objectives. One of the main objectives of the Mercedes Benz Dealer Board is dealer profitability increasing it. We have established a subcommittee that we call Milestones for Profitability. We will be doing profitability modeling. We want to be the best in the Tier 1 luxury brands.
Where do you rank today?
Presently Lexus is No. 1, Audi is No. 2, BMW No. 3 and we are No. 4. Our objective is to increase dealer profitability and to be best in class. We have seen quite a nice increase in the last two months at Mercedes Benz because of increased sales volume and new models. We aOlernKienOP
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When will the study be completed?
The initial timetable is to finalize our study by the halfway point of 2012.
Any other major initiatives?
Some things that we did in 2011 we will continue, such as the CustomerONE Driven to Lead training. It is in depth training for dealership management and dealership personnel at all touch points in the dealership to elevate the customer experience. Mercedes Benz USA has put it together aOlernKienOP
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How does it work?
It is in person. The dealers attend. They have training sessions scheduled through the year in different parts of the country and the management and staff travel to participate dealer principals, management staff, personnel excluding technicians from phone reception to service advisers to sales, sales management and MB USA personnel.
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