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01:42 p.m. EDT, October 12, 2007
After moves to cut costs, restructure is labor force, and improve customer relations, Mercedes Benz USA will now turn its attention to better dealer performance.
Beginning on January 1, the company will link its base margin on each new vehicle sold to 3 percentage points applied toward sales and performance goals. The overall margin, which had been 12.25 percent of the sticker price will also be increased to 13 percent.
The new linkage of performance and dealer margin is an effort to assist "dealers who are having issues with performance to rise up," said company CEO Ernst Lieb in remarks made to Automotive News. "We want everyone to be on a certain level, so we can deliver what we are promising our customers."
According to company figures, some 70 percent of dealerships in the United States already meet the standards for performance outlined in the newly announced program.
The vice president of customer services for Mercedes-Benz, Alan McLaren said the program, which ties payments for performance to actions like contacting repair customers and upping employee training, will help "us to transform from a highly tecnical-oriented company to being more focused on marketing and aftersales."
The company is counting on the high quality of its products mixed with even higher levels of customer interaction and satisfaction to translate into increased sales and even greater customer loyalty.
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