Just 24 existing dealers will become “partners” with Mercedes-Benz UK under their retail shakeup announced this week, writes Robin Roberts.

Mercedes UK director Dermot Kelly said the car maker had spoken to dealers who would be staying with the marque when termination notices expire at the end of this year and further meetings would be held to discuss future selling plans.

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Mercedes-Benz intends to create Experience Centres in the major UK metropolitan areas of London, Birmingham and Manchester with the partners operating outside these areas and taking on much larger geographical areas than currently held.


The M-B dealers’ association is meeting in Birmingham today to discuss what members will do under the shake up, which Mr Kelly has said was in response to customer wishes and market forces.


There are currently 98 franchise holders in the UK operating 159 outlets and under M-B plans there will be an increase to 175 sites.


The shake up was confirmed after record sales of 63,754 cars last year and when orders soared to 1,037 in the first week of January this year from 660 the same time 12 months ago.

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Mr Kelly said the business was very strong and now was the right time to make the changes.


But that will be a sore point with the UK dealers who have invested millions of pounds in their network and now see themselves disenfranchised in a market which does not have a lot of alternative opportunities.


Mr Kelly said the termination notices did not mean that the company would not continue talking to individual dealers and might extend notices in certain cases.


He hoped to start setting up the new partnerships this year but thought it would be over 12 months before the directly owned Experience Centres were operational.


Author Robin Roberts is motoring editor of the Western Mail in Cardiff, Wales.