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MB "Keep the buyer" program explanation (archive)

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Posted by Fred Meloan on September 27, 1999 at 10:02:12:

In Reply to: Value Pricing - This may be war!!! posted by MikeW on September 26, 1999 at 23:40:00:

The Sep 13 issue of Automotive News had a great story on Mike Jackson and the changes he had instituted as the President of MB USA. Basically, MB has lowered the dealer mark-up on 2000 MY MB's to 7% from 13% on the 1999 cars. The dealer hold-back has also dropped from 3% on the '99's to 2% on the '00 models. Dealer's can also earn an additional .25% on '00 models based on Customer Satisfaction scores. Basically the dealer markup has decreased from a total of 16% to 9.25%. My opinion is that MB hopes that it's dealers will now sell the car at MSRP due to the lower mark-up. Only time will tell how this approach works. Remember that dealers have the legal right to sell their cars at any price they want--yes both above and below MSRP.

There are also some additional services that MB dealers are now offering as a part of the new program. One of these is FREE roadside assistance for any MB, regardless of age. This service is restricted to gas, a jump start, or fixing a flat. (I assume that MB USA re-imburses dealers for these services.)

There is much more to story. Too much to repeat here but I think you get the idea.

Interestingly enough, Michael J. Jackson resigned as the president of MB USA this past week to become the CEO of AutoNation. Go figure !!

Fred Meloan

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