DaimlerChrysler
UK says that it is pleased that the High Court has ruled on an early hearing
of legal claims by some of its dealerships.

A consortium of UK dealers is challenging termination notices issued late last
year as part of D-C UK plans to restructure its network.

The High Court ruled on Monday that the case would be heard in mid-July after
DaimlerChrysler was assured it could recover costs from the dealers involved
if they lose the action. The court also ruled that all the dealers’ alleged
grievances must be dealt with as one group action in the High Court in London.


Strategic
Review-


DaimlerChrysler


In addition, the dealers’ lawyers confirmed in open court that the dealers
did not have any claims under competition law.

The issue surrounds 12-month termination orders that DaimlerChrysler served
on all of its Mercedes-Benz car dealers in the UK. D-C has also now served 24-month
notices, on legal advice, in case the 12-month notices are successfully challenged
in the courts.

M-B UK is understood to be planning a new ‘hub’ network of 11 large, mostly
company-owned ‘Experience Centres’ to sell its vehicles, supported by smaller
service centres, only some of which would be recruited from the current network
of full-service Mercedes dealerships.

After the court hearing Dermot Kelly, director of Mercedes-Benz Cars in the
UK, said: "The dealers had previously refused to agree to the procedures
that the High Court has now ruled that they must follow.

"Now that we have agreements on all the matters we are happy to have this
case dealt with quickly and remain fully confident that the court will rule
that our actions were lawful.

"An early resolution would allow us to drive forward our new retail strategy
plan that will bring enormous benefits to customers throughout the country,
not least by expanding the number of outlets in Britain from 159 to 175."

To read
a related news article click
here


To view related research reports, please follow the links
below:-

Automotive
b2b – Strategic threats and opportunities in the automotive supply chain

Automotive
retailing in the new millennium