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Did you know that Mercedes-Benz has nearly 30 models on sale in the U.S. at the moment? Factor in the various engine choices and body styles and you're looking at nearly 90 different models. This is causing Mercedes-Benz and their dealers a number of headaches dealing with it. "It has gotten to the point of being just too much to manage customer model confusion, vehicle logistics and manufacturing. Each of these models require marketing support, education at the dealer level, even service and parts inventory," said Jeff Schuster, president of global forecasting at LMC Automotive. Mercedes is going to do something about it. Earlier this month, the German automaker told dealers at a national meeting in Las Vegas they would be cutting back on the number of models it offers within the next twelve months. "We are going to see models go away within the next 12 months. Within the next 90 days, we might see some of those announcements," according to one unnamed dealer who was at the meeting. The automaker also announced that it would be scaling back the number of options and equipment packages it offers. Poor selling options would be dropped, while popular ones would become "standard equipment on certain models" or tacked "onto existing feature packages." What models may get the ax? We know that the SLC roadster will be leaving the lineup next year due to slumping sales. Automotive News speculates the C-Class coupe/cabrio and S-Class coupe/cabrio could also go due to sales falling. Source: Automotive News (Subscription Required) View full article -
Mercedes-Benz Plans To Slice Down Models and Trims in U.S.
William Maley posted an article in Mercedes Benz
Did you know that Mercedes-Benz has nearly 30 models on sale in the U.S. at the moment? Factor in the various engine choices and body styles and you're looking at nearly 90 different models. This is causing Mercedes-Benz and their dealers a number of headaches dealing with it. "It has gotten to the point of being just too much to manage customer model confusion, vehicle logistics and manufacturing. Each of these models require marketing support, education at the dealer level, even service and parts inventory," said Jeff Schuster, president of global forecasting at LMC Automotive. Mercedes is going to do something about it. Earlier this month, the German automaker told dealers at a national meeting in Las Vegas they would be cutting back on the number of models it offers within the next twelve months. "We are going to see models go away within the next 12 months. Within the next 90 days, we might see some of those announcements," according to one unnamed dealer who was at the meeting. The automaker also announced that it would be scaling back the number of options and equipment packages it offers. Poor selling options would be dropped, while popular ones would become "standard equipment on certain models" or tacked "onto existing feature packages." What models may get the ax? We know that the SLC roadster will be leaving the lineup next year due to slumping sales. Automotive News speculates the C-Class coupe/cabrio and S-Class coupe/cabrio could also go due to sales falling. Source: Automotive News (Subscription Required) -
China has announced today that it would be reducing tariffs on U.S.-built cars and car parts from 40 to 15 percent beginning on January 1st. This reduction will last for three months as the U.S. and China begin hashing out a new trade deal. We first reported the reduction of the tariffs earlier this week. China's Ministry of Finance posted on their website said it hopes the talks between the two can go quickly and remove "all additional tariffs on each other’s goods" that were brought forth before the current trade-war. “China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended U.S. Tariff Hikes. U.S. is doing very well. China wants to make a big and very comprehensive deal. It could happen, and rather soon!” President Donald Trump wrote on Twitter in response to the announcement. China raised the tariffs on U.S.-built vehicles and parts back in July in response to the U.S. raised tariffs on Chinese-built vehicles and parts to 27.5 percent. The move caused a number of headaches for automakers which had to increase prices on models sold in China or change up various plans. Various automakers and groups welcomed the news. At the moment, the U.S. hasn't announced any plans to reduce the 27.5 percent tariff on Chinese-built vehicles and parts. Source: Associated Press, Reuters View full article
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China has announced today that it would be reducing tariffs on U.S.-built cars and car parts from 40 to 15 percent beginning on January 1st. This reduction will last for three months as the U.S. and China begin hashing out a new trade deal. We first reported the reduction of the tariffs earlier this week. China's Ministry of Finance posted on their website said it hopes the talks between the two can go quickly and remove "all additional tariffs on each other’s goods" that were brought forth before the current trade-war. “China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended U.S. Tariff Hikes. U.S. is doing very well. China wants to make a big and very comprehensive deal. It could happen, and rather soon!” President Donald Trump wrote on Twitter in response to the announcement. China raised the tariffs on U.S.-built vehicles and parts back in July in response to the U.S. raised tariffs on Chinese-built vehicles and parts to 27.5 percent. The move caused a number of headaches for automakers which had to increase prices on models sold in China or change up various plans. Various automakers and groups welcomed the news. At the moment, the U.S. hasn't announced any plans to reduce the 27.5 percent tariff on Chinese-built vehicles and parts. Source: Associated Press, Reuters -
Genesis is wanting to distance itself from its Hyundai stablemate by its own dealer network. Currently, if you want to buy or service a Genesis model, you'll need to visit a Hyundai dealership with a discrete Genesis showroom. According to Automotive News, Genesis is planning to cut down from the 350 dealers eligible to sell Genesis vehicles to just 100 across the U.S. "The distribution network model where we're selling luxury cars through 840 Hyundai dealerships that are mainstream dealerships just doesn't work. Luxury customers are looking for a different experience. That's really the driving force," said Erwin Raphael, Genesis general manager. The 100 dealerships will be in 48 markets across the U.S. including Chicago, Los Angeles, New York, and Washington D.C. Dealers in these markets will have the first chance to apply for a franchise. If chosen, dealers will need to have facilities ready by Jan 1, 2021. Dealers who don't apply or not chosen will get a compensation package to reimburse various costs for training, equipment, and inventory. "Some of these dealers have spent hard costs in the last year. We would reimburse them those costs. If they request us to buy the vehicles back for whatever, we'll buy those back and make them whole. Same with parts and accessories, special tools. We're not going to leave the dealers with any baggage," said Raphael. Source: Automotive News (Subscription Required) -
Genesis is wanting to distance itself from its Hyundai stablemate by its own dealer network. Currently, if you want to buy or service a Genesis model, you'll need to visit a Hyundai dealership with a discrete Genesis showroom. According to Automotive News, Genesis is planning to cut down from the 350 dealers eligible to sell Genesis vehicles to just 100 across the U.S. "The distribution network model where we're selling luxury cars through 840 Hyundai dealerships that are mainstream dealerships just doesn't work. Luxury customers are looking for a different experience. That's really the driving force," said Erwin Raphael, Genesis general manager. The 100 dealerships will be in 48 markets across the U.S. including Chicago, Los Angeles, New York, and Washington D.C. Dealers in these markets will have the first chance to apply for a franchise. If chosen, dealers will need to have facilities ready by Jan 1, 2021. Dealers who don't apply or not chosen will get a compensation package to reimburse various costs for training, equipment, and inventory. "Some of these dealers have spent hard costs in the last year. We would reimburse them those costs. If they request us to buy the vehicles back for whatever, we'll buy those back and make them whole. Same with parts and accessories, special tools. We're not going to leave the dealers with any baggage," said Raphael. Source: Automotive News (Subscription Required) View full article
