Mercedes Shows Less Is More in Car Sales

When Chuck Ghesquiere started building his stylish, new Mercedes-Benz of Bloomfield Hills dealership on Woodward Avenue in 1992, the luxury brand was just coming off a year when sales fell 25%.

"Everybody thought I was crazy," he said.

But he knew the then-struggling German automaker planned to close one-fourth of its dealerships, with hopes that it would benefit stores that remained open and help the company get back on its feet. In the end, the plan worked, boosting overall sales for Mercedes-Benz and its dealers.

"It went over very well," Ghesquiere said Monday.


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Will_ - 6/19/2007 9:31:15 AM

+1 Boost

Shaving away franchises can be especially effective in that they allow for more profit for the fewer dealerships, which means more money for customer service amenities such as free loaner cars, special events etc. which can be just as effective at attracting more buyers than most would think.

truecarlover - 6/19/2007 6:08:14 PM

+1 Boost

Yes - this is very important. That's part of the reason domestic brands suffer - because they have too many dealers. If this is an auto enthusiast site - how come more people didn't comment. We have to know that if the companies don't make money - we don't get nice cars. This a business.