Mercedes-Benz Puts $1.6 Billion Into Updating Dealerships

Best Growth Stock – In order to attract the youth towards their showrooms, Daimler AG’s Mercedes-Benz and its dealers are on an absolute makeover mission of their showroom worth as much as $ 1.6 billion. In addition to this, this automobile company is also into expanding its chains.

In a recent interview, the president of Mercedes Benz’s U.S. unit, made an announcement that in order to upgrade their competence and improve their flair, as many as three hundred U.S. dealers of Mercedes, out of their three hundred and fifty dealers will make an expenditure of almost $1.4 billion. This project began in the year 2008 and like the previous years, Mercedes will continue to invest an amount of as high as $250 million for this.

In the previous year, automakers like Mercedes and Bayerische Motoren Werke AG’s namesake BMW brand came very close to Toyota Motor Corp’s Lexus in the sales of luxury cars. Not only this, Mercedes and BMW also stood in competence with Toyota Motor Corp.’s Lexus, the previous year, in the sales of sport-utility vehicle. It is deemed to be mentioned that Toyota Motor Corp.’s Lexus has been at the top most position in the United States since the year 2000.

In January, the sales of Mercedes and BMW was way ahead than that of Lexus. Not only this, experts seeing the performance, have their opinion that in a span of three years only, Mercedes is bound to have lot more coming up in its facilities and products.

The president of the Mercedes Benz’s U.S branch shall have a rendezvous with all the dealers in the coming week at the National Automobile Dealers Association’s annual convention. This convention shall take place in San Francisco. The advisors of the company plan to bring an up gradation in their flair and competence. Recently, the focus is on their job with the dealer body. The dealer body is required to keep prepared a sales force so as to trade and sell the latest products which shall soon be launched in their stores.

In the year 2010, the C-class sedan of Mercedes was the car which sold the maximum models in the United States. It won’t be a surprise to guess that Mercedes has by now declared that a brand new C-class sedan shall be launched in the market in the coming year. Not only this, beyond all the profits, Mercedes has also targeted to hike their sales at a rate greater than 10 per cent in the year ahead. This hike was decided keeping in mind the demand for new models in the market like the SLK roadster and M-Class sport-utility vehicle.

Experts and analysts put up their point of view regarding this, that this deal is indeed very strong and profitable. Experts also say that the renovation would cost as much as $ 5 million for every renovation under a dealer. Nevertheless, this amount is almost half of what usually is the charge for rebuilding showrooms and stored in markets now a days.