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Merc cuts slow up Mercedes-Benz has dismissed suggestions that it

30th April 1998, Page 61
30th April 1998
Page 61
Page 61, 30th April 1998 — Merc cuts slow up Mercedes-Benz has dismissed suggestions that it
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Which of the following most accurately describes the problem?

is encountering serious opposition to its attempts to restructure its distributor network.

It's planning to cut the number of distributors from 56 to 26 by encour takeovers. To date however, only one aging a series of mergers and merging of interests has been Mudie-Bond/Evenloile combine. announced—Tewkesbury-based Mudie-Bond has taken a controlling interest in Oxfordshire distributor Evenlode Truck Centre.

One Mercedes distributor believes the manufacturer failed to realise how difficult the task would be. He argues that not all the takeovers being mooted are financially desirable from the viewpoint of those distributors on the retained list, and that Mercedes will need to offer more cash support to ensure these deals take place. Without it, distributor shareholders won't be willing to sanction some of the arrangements being proposed, he says.