How will the dealerships respond?
Mercedes Benz is on a roll with its AMG GT S winning this year's MotorTrend’s Car of the Year. It also expanded its AMG market with the C450 AMG and the GLE450 AMG. Now, Mercedes Benz USA plans to expand its AMG brand further by having select dealers invest in showroom space and additional training. It plans to have around 100 AMG “performance centers” around the United States by the end of 2016. Steve Cannon, CEO of Mercedes Benz USA, says that “we need to really step up our game in how we treat the AMG customer and the AMG brand.”
The dealerships that will have the AMG centers must pay for extra training for the employees and dedicate around 2,000 square feet of space for a demonstration area. These centers will be divided into two floors: basic and professional with the latter requiring even more space. The dealerships are expected to invest around $200,000. That's a lot of money but the bright side is that the cost will be covered by an additional per-vehicle bonus payment to the dealerships. Sounds like a great plan for Mercedes Benz USA and for the AMG brand. But how will the dealerships react to this plan? Will they accept or reject it? Time will tell.