First steps in M-B dealership revamp • Controversial plans by
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Mercedes Benz to cut the number of CV groups in its dealer network by 50% have received a boost following the successful completion of the first merger.
M-B does not want the number of outlets to fall, but wants to reduce the number of dealer groups operating franchises from 56 to 26 through mergers and acquisitions. Several dealers voiced their concern when the proposals were announced last November and the programme of rationalisation has been slow to get off the ground.
But last week, Tewkesbury and Kidderminsterbased Mudie-Bond started the ball rolling when it took a controlling interest in Oxfordshire dealer Evenlode Truck Centre.
The combined companies will aim to sell around 1,100 new vehicles a year, with a turnover of around £35m. The merger is not expected to cost any jobs. Mudie-Bond managing director Mike Mudie, who is also chairman of the Retail Motor Industry Federation's National Truck Committee, says customers in the area will benefit from the pooling of resources. "Consolidating the market territories in this way means we will be able to make the investment required to meet our customers' needs," he says.