MB Selling their South London Dealerships

[markjay]

I am assuming I am not the only one who received this email:

"We are writing to you as a customer of Mercedes‑Benz at our dealerships in South London. These dealerships have been owned and operated by Mercedes‑Benz Retail Group UK Limited ("MBRG"). MBRG prides itself on providing excellent levels of customer service and building effective relationships with its customers.

We are writing to inform you that these dealerships will be sold to Hedin Automotive London Ltd ("Hedin"), part of the Hedin Mobility Group with effect from 31 March 2023.

The following dealerships are affected:

Brooklands
Croydon
Dartford
West Bromley (After Sales)
Our South London Trade Parts operation, will also transfer to Hedin Automotive London Ltd as part of the sale.

Hedin Mobility Group is one of Europe's largest mobility providers with more than 7,500 employees and operations in 13 countries and was founded in 1985. Today, its business ranges from the import and distribution of vehicles and spare parts to vehicle retailing and mobility solutions. Hedin Mobility Group’s headquarters are in Mölndal, Sweden..."

 

[markjay]

I used Brooklands for many years, and couldn't fault them.

I no longer have a Merc, but for others' sake I do hope that the quality of service will not suffer.

BTW, I hope that the museum and the driving academy are being retained by MB?

 

[liamt]

I suspect this has in part something to do with the agency model to ensure all dealerships are franchised. I believe there has been a lot of internal restructuring within MB UK.

 

[tonysurf]

Hedin Mobility Group seals deal to buy four dealerships from Mercedes-Benz Retail Group – Car Dealer Magazine

Mercedes-Benz Retail Group has agreed a deal to sell four of its South London dealerships to the ambitious Hedin Mobility Group. The deal, likely to be

cardealermagazine.co.uk

 

[MikeInWimbledon]

Refocussing Corporate retail efforts on Asia, where the real margin lives?

 

[Bobby Dazzler]

Blimey, they’re getting serious if they’re selling Brooklands. I hope Brooklands doesn’t lose what makes it special as a result.

The agency mode means that Mercedes no longer need to own dealerships in order to control new car sales in major markets.

However they do need to own them to (fully) control the customer experience, so let’s hope that’s not a signal for the future.

 

[liamt]

Blimey, they’re getting serious if they’re selling Brooklands. I hope Brooklands doesn’t lose what makes it special as a result.

The agency mode means that Mercedes no longer need to own dealerships in order to control new car sales in major markets.

However they do need to own them to (fully) control the customer experience, so let’s hope that’s not a signal for the future.

I suspect it is just the dealership side that will be franchised off. They would be stupid to get rid of the Mercedes Benz World side of it also. It is practically the best bit of advertising for the brand in this country that other German marques don't have. I've been a few times having done a half day AMG driving experience, I was last there back in October to do the owner driving programme as a result of getting my A35.

 

[grober]

Self Asset Stripping?

Asset Stripping: Meaning, Criticism, Example

Asset stripping is the process of buying an undervalued company with the intent of selling off its assets to generate a profit for shareholders.

www.investopedia.com

 

[Bobby Dazzler]

I suspect it is just the dealership side that will be franchised off. They would be stupid to get rid of the Mercedes Benz World side of it also. It is practically the best bit of advertising for the brand in this country that other German marques don't have. I've been a few times having done a half day AMG driving experience, I was last there back in October to do the owner driving programme as a result of getting my A35.

Indeed it’s a great facility. Not sure whether the track, Museum and eateries pay for themselves and whether the shortfall can be justified by Mercedes UK, but as a facility it does set Mercedes apart, and creates a very rare link to the origins of motorsport, so it would be a shame to see it change dramatically.

That said I wouldn’t mind if the driver training reverted back to the way they used to do it. Whilst the facilities were really rather basic in comparison - and not exactly on brand - visiting MIRA near Nuneaton is relatively exclusive for those outside of the industry, and driving AMGs there only serves to make it even better.

 

[Teego]

I was told by a dealer exec last summer that all dealers outside the M25 would become franchises. At the same time he told me that these businesses would follow the agency model with MBUK controlling new car sales prices and offers.

 

[Benz17]

I used Brooklands for many years, and couldn't fault them.

I no longer have a Merc, but for others' sake I do hope that the quality of service will not suffer.

BTW, I hope that the museum and the driving academy are being retained by MB?

I hope so to, I have been using MB Brooklands since I got a service plan in 2020, even though they are a fair distance away from my home, and upon your recommendations Mark, and can’t fault them with the 2 services I have had.

Have one remaining service left in July, which would be the last of the service plan.

 

[MikeInWimbledon]

Self Asset Stripping?

Asset Stripping: Meaning, Criticism, Example

Asset stripping is the process of buying an undervalued company with the intent of selling off its assets to generate a profit for shareholders.

www.investopedia.com

Peanuts in the scale of a motor manufacturer's Asset register.

The issue must be about distancing from the mundanity of kicking boxes out of the door, and ripping off clients through maintenance and parts sales.

There are big challenges for the industry ahead as it opens up that half of the world known as Asia, and transitions to EV. UK retail must be a very low priority.

I did Stuttgart back in 2019 and was amazed how many vehicles (50% and especially high spec) going down the line at Sindelfingen and Zuffenhausen had Asia on their production tickets.

UK retail may be 13% of Europe but it's still less than 4% of their units, and much less by value, so it can't figure high in their priorities.

Even BEV's, still just 5% of their units globally, have to be a bigger priority than flogging boxes and bits

 

[badgx]

Collindale branch and Stratford branch are now part of Sytner Group. I remember walking in and kept thinking BMW in my head.

 

[markjay]

It's all very confusing. MB have been buying and selling MB dealerships repeatedly since the late nineties... I lost track.

 

[vijilants]

I also recieved the email on this thread.

One of the dealerships on the list is my local dealership and unfortunately I have had to use them for several years. I can't say that I have been impressed with the service provided over the years, and nowadays I dread having to deal with them.

Guess I will know if there is any difference the next time I have to pay a visit.

 

[BLACKSILVER]

Mercedes seem to be selling a few of their dealerships. Loughton being one of them, sold in to attend not too long ago.

 

[Steveml63]

Selling now before they become worthless due to direct selling of EVs (like Tesla) and serious reduction in servicing & parts requirements (hence revenue) on EVs compared with ICE cars.
Would be mad to buy a franchised car dealership these days, in my humble opinion.
Their demise is written very large on the wall and will come very quickly.

 

[tonysurf]

Just received this:

Hello As a valued customer of Mercedes‑Benz Retail Group, I am writing to inform you that the ownership of Mercedes‑Benz Bromley is transferring to Hedin Automotive London Ltd on 01 April 2023. To ensure a smooth transition of ownership the dealership will be closed from 17 March 2023 and will reopen on 03 April 2023. This change will not affect any existing ServiceCare plans that you have in place and you will still receive the same high level of service from our new owners. If you have any questions or would like to discuss anything with us, please call 0208 663 9800. I would like to thank you for being a customer of Mercedes‑Benz Retail Group and wish you many years of enjoyable and stress‑free driving with Hedin Automotive London Ltd. With kindest regards. Angela Shepherd Chief Executive Officer Mercedes-Benz Retail Group​

 

[vijilants]

I wonder how the staff currently being employed by Mercedes Benz at these three branches feel about all of this and have they been forced into a corner.....take the new position under the new company or redundancy ??

 

[Bobby Dazzler]

I wonder how the staff currently being employed by Mercedes Benz at these three branches feel about all of this and have they been forced into a corner.....take the new position under the new company or redundancy ??

It happens all the time. Employees are transferred with the business when it is bought and sold. and their rights are protected (known as TUPE). Whilst redundancies may happen for other reasons - either in the run up to or following - a business being bought, it would be highly unusual for employees to be offered redundancy if they objected to the change in ownership.