Troubled American car giant DaimlerChrysler has been criticised by United Kingdom Jeep dealers who say the vehicle maker’s UK operation wields unnecessary control over them and has a poor commitment to marketing.
The Retail Motor Industry Federation (RMI), which represents dealers in England, Wales, Northern Ireland and the Isle of Man, says that its winter 2000/2001 dealer attitude survey also found increased anxiety among Mercedes-Benz dealers who said that DaimlerChrysler exerts considerable control over their businesses, and that they expect the level of control to increase in the coming year.
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Mercedes-Benz UK recently gave all of its dealers, most of whom are independently owned, 12 months’ notice of termination of contract. The company plans to set up several metropolitan ‘Experience Centres, which it will own, supported by regional sales and service centres, few of which are likely to be operated by current dealers. Some dealers are taking group legal action against Mercedes-Benz UK over the plans.
“Since the summer 2000 survey, Mercedes and Jeep dealers have become increasingly negative about their manufacturer’s effectiveness in product advertising,” said RMI franchised dealer director, Alan Pulham.
“What is disturbing is that an even smaller number than six months ago believe that the senior management of Chrysler takes the dealers’ views and opinions into account before making decisions.’
Pulham added that the survey shows that UK Chrysler Jeep and Mercedes dealers are even more cynical about the value of holding their franchise. The scores returned by both franchises have plummeted.
A Mercedes-Benz UK spokesman said: “The views of Mercedes-Benz dealers are disappointing and come when we have just recorded the highest first quarter sales in our history. This is on top of seven consecutive years of record sales in the UK.”
The Chrysler and Jeep division of DaimlerChrysler said in a statement it was mystified by the very negative interpretation being put on the survey results and surprised to be singled out in such emotive terms when ahead of so many other manufacturers.
“The fact is that we enjoyed superb results last year and widespread acclaim for the launch of the Chrysler PT Cruiser,” said a company spokesman.
“Despite very difficult trading conditions for everyone last year, and the added challenge of establishing the Chrysler and Jeep business in a new headquarters, we bucked the market trend to show a healthy increase in volumes.
“That was a superb achievement and it was due to a strong partnership with our dealers.
“What’s more, we’ve maintained the momentum so that as we go into April we’ve established the UK as the number 1 market for Chrysler and Jeep in Europe and it looks like 2001 will be our best year ever.
The spokesman added: “You just can’t achieve all this with a poor dealer/manufacturer relationship and we don’t believe anyone studying the survey would conclude that we have a poor relationship.”
Pulham noted, however that Rover dealers were now much happier.
“On the positive side, [MG] Rover dealers who faced potential ruin a year ago are increasingly positive about the value of holding their franchise,” he said.
“They also report greater confidence in the profit potential and future profit potential of their businesses and increased satisfaction with the carmaker’s product advertising.
“Rover [dealers] are also one of only two [franchised dealer networks in the UK] that believe manufacturer control over the coming year will not increase,” Pulham said.
To view related research reports, please follow the links below:- DaimlerChrysler Strategic Review |
