Mercedes-Benz Dealers In Australia File Lawsuit Over The Brand's New Retail Model

Mercedes-Benz car dealers in Australia have launched a $650 million legal action against the company over the German carmaker's new sales model. way it sells cars in Australia. It's the same model which was also introduced in India through which Mercedes is effectively taking ownership of its stock, cutting dealers out of the new-car sales process and introducing a "no bargain" price across its network. The brand says the move will give buyers more choice of vehicle models and make the sales process more transparent.

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More than 80 per cent of Mercedes dealers in Australia have signed up to the legal action.

However, dealers in Australia argue the plan will decimate the local industry, which employs more than 60,000 people. More than 80 per cent of Mercedes dealers have signed up to the legal action, accusing the German carmaker of forceful implementation. Dealers are also upset that Mercedes isn't offering them compensation for the goodwill they've created for the brand and there is no renewal clause in their four-years agreement deal.

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Mercedes-Benz says it worked collaboratively with its dealer network over the past three years.

James Voortman, Chief Executive - Australian Automotive Dealers Association (AADA) said that some dealers have worked hard for decades to establishing their businesses. "At the heart of this industry are Australian family businesses who have built up their businesses in some cases over generations with Australian ingenuity and plain hard work. The dealer network has invested hundreds of millions in growing their businesses only to have that value taken from them with the stroke of a pen in Stuttgart," Voortman said.

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In a statement, Mercedes-Benz said in a statement the brand had worked collaboratively with its dealer network over the past three years ahead of the launch of the new sales model. It said the new model would better deliver to the demands of modern consumers.

Source: News.Com.au