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Mercedes of Gillingham shutting down.

http://www.mercedes-benzofgillingham.co.uk

Website says owned by Dutton Forshaw group and branches appear to include Ashford, Canterbury, Maidstone and Tonbridge. For all we know may just be closing one branch and expanding others as was done by my local dealer. And all staff were offered jobs at other branches. Maybe we need more detail before jumping to conclusions?

Lot of dealers have shut branches/showrooms that are not up to latest standards and moved to new sites, expanded better ones etc.
:devil: I must confess that all of your posts gives me the impression of being wrote by an accountant\economist. :) Usually when a branch closes the staff might be offered jobs elsewhere, but is that a legal thing that might make the bosses feel better? Will they pay travelling expenses? Will the employee keep the same salary? Is there a need to duplicate jobs? I would imagine the answers will be; No, no and no in that order, or any combination of the above. :) We lost our excellent franchaise, that was well run, well liked and highly profitable, but in this modern age of numbers, it just did not fit the profile. Because it was so profitable Mercedes allowed it an extra year of business but that merely prolonged the death. I hate these modern supermarket dealerships where everything is based on selling cars and be blowed to developing any type of relationship with a customer. :mad: :mad:

Our old dealership now sell Toyota, but is deemed to small to sell the Lexus brand (rubbish car anyway):D

Regards
John
 
Our old dealership now sell Toyota, but is deemed to small to sell the Lexus brand (rubbish car anyway):D

Regards
John[/QUOTE]

Sorry! Not going to bite.....:D :crazy:
 
Dealer ownership is a real snake pit at the moment. Good friends of mine (one of whom wanders around the GP grid with a microphone) were both Toyota and Lexus dealers for many years. They were forced out of both by the importers demands and became a succesful VW dealers. Sold out earlier this year a 'turnaround Terry' (all laptops and hair gel) and are not regreting the move one jot. It seems the only way to stay profitable is to be a major group with all the issues which that entails.
I now work for myself and enjoy the job security of a stunt man, but I do feel for those who face redundancy at the coldest time of the year.
 
Sadly, the small friendly local dealer can only really survive in a car market where we do not all seek and get big discounts. DC Insider posted that net of all costs dealers only make about 0.5% margin on sales. In the age of internet discounts, car supermarkets and the like, only the big can survive. Harsh world but the economic forces are just too strong for the small to resist.

Add to the large discount/small margin culture, the cost of modern dealerships. Customers now expect and get, flash showrooms, comfy seats and magazines, cappuccino coffee, and service bays with all the latest and very expensive kit. It is a very tough world being a dealer now. High capital, low margins and you must have a big throughput to recover the huge overheads.
 
Apparently Gillingham was just a Service Centre. Phoned another branch in the Kent group to see if I could find out more. They were very helpful to me once when I was on my way to Dover and France. Sales guy said problem was the lease ran out and they could not renew it. But they have four other sites in Kent and they hope to place people on their other sites. This is NOT an official company view and I cannot vouch for it in any way, but there are usually at least two sides to every story.

Similar happened in my area when they shut the Totton Service Centre which I used and liked a lot. But all the people ended up in jobs at other branches and I now go to the Southampton Airport centre. Bigger and more modern. But less human sized of course.
 
Apparently Gillingham was just a Service Centre. Phoned another branch in the Kent group to see if I could find out more. They were very helpful to me once when I was on my way to Dover and France. Sales guy said problem was the lease ran out and they could not renew it. But they have four other sites in Kent and they hope to place people on their other sites. This is NOT an official company view and I cannot vouch for it in any way, but there are usually at least two sides to every story.
It's been well reported that MB dealership workshops are very quiet as they're not seeing anything like the level of warranty work they used to get and many people use specialists once their cars are out of warranty. My own local dealership (part of the Inchcape group) is offering huge discounts on servicing even of cars that are 0-3yrs old.
I took my own car in for servicing a few wks ago and I was the only person there at 8AM - it still took a ridiculous amount of time (like 40mins) to take the car off me etc, but in that time only 2 other people came in.
I therefore think it's extremely likely that the mechanics at Gillingham are now surplus to requirements, and the group would have no use for the supporting staff.
 
Is it suprising dealers are quiet when they charge £400-£600 for a B service. When they don't return calls, or follow up leads. When customer service has fallen from the previous levels and when the specialist can do the same work for half the price......
 
It's been well reported that MB dealership workshops are very quiet as they're not seeing anything like the level of warranty work they used to get and many people use specialists once their cars are out of warranty. My own local dealership (part of the Inchcape group) is offering huge discounts on servicing even of cars that are 0-3yrs old.
I took my own car in for servicing a few wks ago and I was the only person there at 8AM - it still took a ridiculous amount of time (like 40mins) to take the car off me etc, but in that time only 2 other people came in.
I therefore think it's extremely likely that the mechanics at Gillingham are now surplus to requirements, and the group would have no use for the supporting staff.

I would vouch for this. I had a B service done at MB Stratford using rates they said were for "6+" year old cars. As I recall I paid around £340 for my B service plus some extra bits which were agreed on over the phone. Subsequently I was phoned up and asked about my experience and was mailed a questionnaire to complete. MB are definately trying to understand what is going on in the market place. I spent sometime with the person who handled my service precisely why I hadn't been using them in the last few years. I only found out about the 6+ deal when I bought my new battery from them.

Les
 
Gillingham is probably the poorest of the Medway Towns, which together represent one of the most deprived areas of the UK. I cannot think of anywhere in Cheshire (a leafy, prosperous county) that would compare.
No but go to places like Barrow in Furness, Wigton and other largish towns in Cumbria. The major industry there supported the town, but like all things at the moment are in decline. Closer to home there is Moss Side Manchester, Toxteth Liverpool and many more. I feel sorry for the folk in Gillingham but please don't go calling it a deprived area.

rant over
 
No but go to places like Barrow in Furness, Wigton and other largish towns in Cumbria. The major industry there supported the town, but like all things at the moment are in decline. Closer to home there is Moss Side Manchester, Toxteth Liverpool and many more. I feel sorry for the folk in Gillingham but please don't go calling it a deprived area.

rant over

Very true. Look at the small towns in the west -Ergremont, Cleator, Whitehaven. One employer, downsizing rapidly.
 
:)
 
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No but go to places like Barrow in Furness, Wigton and other largish towns in Cumbria. The major industry there supported the town, but like all things at the moment are in decline. Closer to home there is Moss Side Manchester, Toxteth Liverpool and many more. I feel sorry for the folk in Gillingham but please don't go calling it a deprived area.

rant over


I'm sorry Ian, but I know the Cumbrian towns you mention very well (I am originally from Lancashire, had a business in Preston in the 1980s and have worked at Sellafield and travelled all over Cumbria) and I still don't hesitate to call Gillingham deprived.

West Cumbria and the Medway towns (including Gillingham) shared EU Objective 1 status, which means that they were among the poorest parts of the whole 15-state European Union - before the recent enlargement to include the likes of Poland, the Czech republic, Slovakia, Hungary, Romania and the Baltic states.

There are far more similarities between the Medway towns and west Cumbria than you might think. Their economies were all based on sunset industries and prosperity rose and fell with the fortunes of those industries. In both cases, those industries have largely gone and the social and economic problems left behind are massive.

Like many northerners I used to believe that the south of England was universally prosperous. But I travelled extensively in my job and I have to say that I was shocked to find pockets of grinding poverty in the south that I would have expected only to find in the north.

Did you know that one of the poorest boroughs in the whole of the UK is Tower Hamlets, which is where Canary Wharf is sited? Its poverty is rated as bad as Humberside and East Yorkshire.

The economy of Kent used to be based around the sunset industries of coal mining, ship building and ship repairing. These are hardly the industries I expected to find in leafy and prosperous Kent!

I have several friends who live in Kent, and I have travelled all over the county with them. There are great contrasts between affluent commuter villages and socially deprived crime hotspots such as the Medway towns, Hastings, Dover, Ramsgate and Margate, all of which have exactly the same social problems as in west Cumbria plus the Durham coalfield, south Yorkshire, Humberside, Tameside, Merseyside, the Potteries, the Black Country (in the West Midlands around Wolverhampton) and for exactly the same reasons - their major industries closed down.

It is easy if you live in the north (and don't travel extensively) to believe that deprivation only occurs in the north, and that there is a simple north/south divide. Well, it is a lot more complicated than that.

Let me tell you that Harrogate, Chester, Alderley Edge/Wilmslow and Kendal are all far more like prosperous southern towns than northern, with house prices to match. If you want to see poverty, high crime, urban squalor and the results of drug dependency you are just as likely to find it in Luton, Hatfield, Portsmouth, Aldershot, much of inner city London and the other places I mentioned above as in any of the many areas of the north that have been devastated by the demise of traditional industries.

I hope that explains why I described Gillingham as deprived. I am confident that the description is accurate, as I regularly visit the Medway towns on business. Ask anyone who knows Gillingham, Strood, Chatham, Rochester and Maidstone (a garrison town) and they will tell you what these places are like. To me, they compare surprisingly closely with Barrow (my maternal grandmother was born and brought up on Walney Island), Millom, Whitehaven and Workington and share much the same problems.
 
All employees of MB Gillingham are being made redundant on 24th December as MB have pulled the plug on the Gillingham site. The lease was up and it wasn't making enough money so its being closed.
:eek: thought are with the employes and their familys :mad: :(
 
Usually when a branch closes the staff might be offered jobs elsewhere, but is that a legal thing that might make the bosses feel better? Will they pay travelling expenses? Will the employee keep the same salary? Is there a need to duplicate jobs?

There are a whole load of legalities that put the employer at risk so the whole process is very very cold once the decision has been taken.

I would guess that apart from any issues with regard to lease quarters the other factor is that the Christmas period is quiet so the recovery of overheads and costs against income for around two weeks or more is at its lowest.

Making people redundant isn't cheap - a small business may actually be pushed over the edge dealing with just statutory redundacy pay if it is struggling.

The issue for a business that intends to continue is to limit the damage. That requires cold and hard unemotional thinking. However callous that might sound it protects the livelihoods of those who remain in other parts of the organisation. It also protects creditors who at the end of the day are usually employers as well.
 
I wonder if customer service contributed to wards it.
 
Nearly all these dealers are in groups nowadays -or owned by Mercedes. What looks like a closure is often just rationalisation. Some older branches do not meet the latest standards demanded by Mercedes. They are then shut while newer better equipped branches are opened. Many branches of dealers from Portsmouth to Poole have moved to bigger and better sites and shut the old ones that could not be brought up to modern standards. The process has lots of benefits for customers even if it involves some upheaval for staff. In particular the new MB dealer site just off junction 5 of the M27 (near Southampton Airport) is very accessible from many places. I miss the Totton branch but the new site offers a whole lot more. Huge showroom with lots of models on display. Really clean, modern and well laid out service bays with glass windows so you can sit and drink coffee while watching your car being serviced. Spare parts, accessories, everything all to hand. And lots of free parking if you want to view new or second-hand stock. It has to be the future.
 
I think there's a job as Brand Enforcement Manager with your name on it. ;)
Blimey! Is that what they call them now. Bit like Refuse Disposal Officer.
 

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