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

SourceBusiness Insider
CountryMiddle east

This is an automated machine translation of an article published by Business Insider in a different language. Machine translations can generate errors or inaccuracies; we will continue the work to improve these translations. You can find the original version here. 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 more...