Thursday, June 20, 2024
NewsAustralian Mercedes-Benz And Honda Dealers Moving On From Franchise Model

Australian Mercedes-Benz And Honda Dealers Moving On From Franchise Model

Mercedes-Benz and Honda dealerships in Australia looking to switch from franchise to agency model for its dealerships

  • Australian dealerships thinking up new ways of doing business

  • The move to an agency-based model means a set price for every model, and a more efficient sales process

  • Mercedes-Benz and Honda making the move


Mercedes-Benz will be moving on from a franchise-based dealership model in Australia to a new business model that uses dealers as intermediaries to sell cars from the manufacturer.

Honda is planning to do the same in Australia with its dealership network starting in July 2021. Mercedes-Benz hopes the transition will be completed by January 1, 2022.

An agency-based dealership model means that dealers are a store representing a brand where prices are fixed and there’s no haggling. It’s essentially like any other store out there, selling products for a manufacturer.

Dealerships under the current model are franchises that purchase their vehicles from the manufacturer and then sell them to consumers.

Under the new model, Mercedes-Benz and Honda dealerships would simply act as the intermediary to complete the sale, taking a fixed commission on each transaction according to Australia’s CarSales.

The move has been widely condemned by Australia’s Mercedes-Benz dealerships, but the company appears to be pressing on regardless.

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Charles Jolicoeur
Charles Jolicoeur
Charles Jolicoeur was studying to be a CPA when he decided to drop everything and launch a car website in 2012. Don't ask. The journey has been an interesting one, but today he has co-founded and manages 8 websites including EcoloAuto.com and MotorIllustrated.com as General Manager of NetMedia360. He also sits on the board of the Automotive Journalists Association of Canada. Send me an email

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