Mercedes wants to profit more from the success of its G-Class and is lowering the discounts for dealers starting in March

  • Date: 23-Feb-2021
  • Source: Business Insider
  • Sector:Transport
  • Country:Middle East
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Mercedes wants to profit more from the success of its G-Class and is lowering the discounts for dealers starting in March

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Mercedes-Benz is lowering dealers' margins in the business of its G-Class heavy off-road vehicles (W 463 series). "As of the order date of March 1, 2021, a uniform recycler discount of 3 percent (of which factory share 1 percent) will now apply to the customer segments fleet stars 1 (5GE) and sales representatives/franchisees (FHV)," reads a letter from the Stuttgart-based Daimler brand's "Marketing Programs Team." The confidential communication, marked with priority "High," is available to Business Insider.

Mercedes had previously granted the above-mentioned sales partners a five percent recycling discount. Together with the 13 percent basic margin that the manufacturer grants to dealers, this allowed a comfortable 18 percent margin to be realized. Now, this drops to 16 percent for sellers to operators of smaller fleets (fewer than four cars).

In Mercedes circles, the surprising reduction in the trade-in discount is believed to be due to two factors. First, the iconic G-Class - first launched in 1979, the year of the second oil