- Jan 27, 2009
Paradox: As quality improves, Mercedes-Benz dealerships profits decline
Customers that buy vehicles that break down regularly don't tend to stay loyal, and the folks at Daimler headquarters know this. Mercedes has been working hard to improve quality, and the proof shows in the form of less traffic at M-B's service centers. While that's great for customers, it's bad news for dealers, as warranty work has gone down by 30% or more in some places. For now, dealers are left scrambling for ways to add revenue to their shifting business model. Fortunately, Mercedes' quality leap will result in more satisfied customers, which means the dealerships will be able to continue to work on their core business: selling vehicles.
[Source: Automotive News - Sub. Req.]