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'Meteoric growth' for M - B
Page 30
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• by Emma Penny Speaking to CM one year on from taking the helm at Mercedes-Benz, chief executive Ian Jones said the company had recorded its best year yet on trucks.
Talking on the first day of the CV Show, he says that while it has been a year of great success, there is always a downside: "I didn't expect or want such meteoric growth in one year—now we're on a pedestal and it's easy to be knocked oft" But he says the company reaped the benefits of "others getting it wrong".
Tight or non-existent supplies and 'companies getting indigestion and losing their appetite for doing business" were the two factors Mercedes took advantage of last year.
Jones also believes the company has firm foundations for growth this year, based on stringent management of its used vehicle parc. "We had a significant inventory of used vehicles, and we had to put our house in order. But by the end of last year, through good marketing, we had reduced our total inventory of used vehicles to 247, including vans. We now have the lowest used inventory of any manufacturer."
Clearing the used vehicle stock has allowed Mercedes to do deals, added Jones. "It has given us the confidence to do business. We have done deals we probably wouldn't have done 12 months ago for two reasons: we have the Axor as a fleet truck which allows us to do volume deals, and we have taken a much more fleet-friendly approach than we have done historically—we have changed our attitude and looked to find ways of saying 'yes', rather than why we can't do things."
He also believes the company's relationship with the dealer network has been "transformed", and the network is now committed to a 260m investment plan to open new facilities and improve current ones, he says.
"In five years' time we should have increased the number of outlets to 105, but with fewer, larger dealer groups. All will be dedicated to commercial vehicles, and we've terminated distribution of vans through the passenger car network, which accounts for 3,000 vans a year." That move means that 26 dealers are currently selling 33,000 vehicles a year,