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Manipulating Merc models

5th February 2004
Page 69
Page 69, 5th February 2004 — Manipulating Merc models
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Which of the following most accurately describes the problem?

1Vajor buy-back deals can drive down residuals. But Mercedes-Benz used CV boss Adam Slater seems to have the situation well in hand.

M' anufacturers like Mercedes-Benz are having to adopt a far-sighted approach to supplying new vehicles to big fleets to avoid being stuck with massive buy-back problems a few years down the line. Adam Slater. M-B's general manager, approved used commercials, explains that if the company wins a big order for,say,Axor. 6x2 tractors at 400hp, then what it may do is try to make the 430hp model more attractive to fleet purchasers for a while.

It might also elect to promote particular specifications —maybe the high-roof sleeper over the standard sleeper— eventually switching tack to ensure that not too many trucks are sold with that level of equipment.

"That way, we'll end up with a healthier mix of used stock," he says."What we're anxious to avoid is large numbers of identical trucks all coming onto the second-hand market at the same time." That, it seems, is a recipe for ending up wi fields full of unsold wagons.

"We're pushing three to five-year agreements as well, and that helps the situation tc he reports."It's all a bit of a balancing act if we're honest, but it's vitally important that get it right."

Not that Mercedes needs to worry too mi about excess stock at present: "At the end o last year we had just 278 used vehicles on ot books,with a further 100 on their way out tc dealers and the same number on their way into us," says Slater."Th at's about where wl wanted to be." Not many of them were Axc "It's a bit too early for us to be getting a lot c them back," he says.

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