Mercedes-Benz in Court with dealers over payments

Disagreements between car manufacturers and franchised sales outlets are nothing new. However Mercedes Benz Australia has taken it to new levels with a fight ongoing in the courts. This is set to shake up the way cars are sold in Australia for years to come.

Federal Court building

It all started when Mercedes-Benz decided it wanted to move to a fixed sale price/commission payment model and the dealers didn’t like that.

Thirty-eight of the nation’s 55 Mercedes-Benz dealerships have launched legal action against the company in the Federal Court seeking compensation.

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There are previous examples of discontent with Holden and Honda both having issues of late.

The question is do manufacturers have disproportionate power over the businesses that sell their cars and use that unconscionable power.

Other manufacturers are also looking at this model. I’m guessing they will be waiting until the outcome of the MB case is known.

This comes on top of the MB emissions scandal in 2021 in Europe. So it hasn’t been a happy time for the manufacturer.

As of the end of July MB offered some 30 different models in Australia. They had a touch over 3% market share with just under 20,000 cars, SUVs and vans sold to the end of July.

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Im Rob Fraser

Some other articles from the general press about the court case.

https://www.abc.net.au/news/2022-08-04/mercedes-benz-dealers-seek-compensation-over-new-sales-model/101295126

https://www.smartcompany.com.au/business-advice/franchising/franchising-cases-mercedes-benz-dealers/

https://www.afr.com/technology/mercedes-benz-trial-kicks-off-with-a-bang-20220802-p5b6ki

https://www.slatergordon.co.uk/newsroom/mercedes-emissions-timeline/

 

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About Rob Fraser 2504 Articles
Rob Fraser – General dogsbody & Director Rob is the founder of the business. He constantly mutters something about way too many red wines one evening being to blame. Often known for taking the 4WD in the driveway over the sports car, he has travelled pretty much everywhere in Australia and when he is bored goes for a drive. He first learned to drive on the farm in a left hand drive WW11 Jeep when he was 11, and was hooked on 4WDriving way back then. In addition to 4WD he is an avid motoring enthusiast and has maintained a strong interest in the industry ever since his teens. He has owned way too many cars in his time as well. Having previously lived at the top of corporate life he retired in 2000 and hasn’t put a suit and tie on since. Cars are his passion so why not have a business doing what you love he figures. He has towed either a caravan or camper trailer to most parts of Australia, has run guided tours for camper trailers’ and instructed drivers in off road towing.