Mercedes-Benz Integration: Beijing Benz and Mercedes-Benz China Join Forces to Start GLK Production Next Month
Currently, the channel integration of Beijing Benz and Mercedes-Benz China has entered the practical operation stage. The integration of the two Mercedes-Benz entities is expected to gradually form a synergy before the launch of Beijing Benz's first domestically produced SUV, the Mercedes-Benz GLK, in October. Mercedes-Benz China will start GLK production next month. Fu Qiang, Vice President of Sales and Marketing at Beijing Benz, will take on the role of Vice President of the joint venture. Contrary to previous speculation that he would only be responsible for import car business, Fu Qiang will be entrusted with significant responsibilities, overseeing the comprehensive management of the sales network.
On one hand, Mercedes-Benz aims to achieve 300,000 units sold annually in China by 2015. On the other hand, with more domestic models being localized and competitive brands rapidly expanding, accelerating the construction of the sales network is inevitable. By the end of this year, Mercedes-Benz China's sales network will increase to around 180 dealerships, reaching 500 by 2015, thus satisfying higher sales targets. Given Fu Qiang's extensive network and experience, he is undoubtedly the best choice to oversee the expansion of Mercedes-Benz's sales network.
"In a way, we are already living together, earning money and spending it together. Do you ask if we will get married? Well, we are deeply in love now, so the probability of getting married is quite high," said Hao Bo, Executive Vice President of Sales and Marketing at Mercedes-Benz China, and Fu Qiang, Executive Vice President of Sales and Market at Beijing Benz, during an exclusive interview with Southern Daily reporters at the Chengdu Auto Show. They used this vivid metaphor to describe the integration of the two Mercedes-Benz entities.
Sales Level Integration Already Achieved
After experiencing the Mercedes-Benz integration wave, Hao Bo and Fu Qiang made a public appearance together at the Chengdu Auto Show, showcasing their affection openly. Hao Bo introduced that Mercedes-Benz China and Beijing Benz would collaborate using the best talents and resources. Currently, there have been new developments in their cooperation plans. In terms of sales, both parties have formed an integrated state; from a regional perspective, the functions of regional managers have also been further integrated. They aim to achieve harmonious unification in the sales of imported and domestic cars as much as possible. Hao Bo also revealed that Mercedes-Benz will establish regional offices with all functional departments including sales, marketing, and after-sales service. "It will be an integrated regional office, aiming to be closer to the market."
"Integration between the two parties is an inevitable and only choice," according to Fu Qiang. The term "channel integration" discussed in the media previously was not entirely accurate. Mercedes-Benz China and Beijing Benz have always shared the same sales channel. This resource integration does not involve the channel. The current change is that previously, there were two regional managers in a certain area, each responsible for part of the dealer management. Now, these two management teams have merged into one team. The scope of responsibility for the original regional manager has also changed, previously responsible for either imported or domestic Mercedes-Benz sales, now they will be responsible for both domestic and imported Mercedes-Benz sales. The head of this regional office will be responsible for all products, including imported and domestic Mercedes-Benz, and future sales business in this regional market.
Regarding whether the two parties will merge into one company, Fu Qiang used an analogy: currently, they are a cohabiting couple whose ultimate goal is to build a happy family.
GLK Production Starts Next Month
In the first eight months of this year, Mercedes-Benz achieved excellent sales results with nearly 124,000 vehicles sold, representing a year-on-year increase of 41%. Fu Qiang stated, "Once both parties' resources are effectively integrated, it will allow us to focus more on consumers and the entire market. Additionally, Mercedes-Benz needs to continuously introduce new products into the Chinese market, further expanding its product line." Beijing Benz launched the new C-Class in July and achieved volume sales. The GLK will begin production at Beijing Benz in October, marking a completely new model. In fact, we must also consider the coordination issues with the imported GLK. Through the topic of GLK localization, it can be seen that Beijing Benz and Mercedes-Benz China have started to think about the same issue together.
For the future market, Fu Qiang believes that despite uncertainties in macroeconomic improvement, luxury cars will still see double-digit growth this year. After cars enter households, with income growth and the expansion of luxury car product lines, many consumers are getting closer to luxury cars. After their first car purchase, they will continue to upgrade their vehicles, so the tendency to buy luxury cars will not change. Another important reason is that Chinese consumers have strong brand loyalty, and Mercedes-Benz is naturally one of them.
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Four New Mercedes-Benz Models Launched in the Chinese Market
At the Chengdu Auto Show, four new Mercedes-Benz models officially entered the Chinese market: the long-wheelbase E-Class sedan E300L Elegant Edition, the new SLK-class convertible, the GL4504MATIC Prestige Grand Edition, and the smart Kobe Special Edition.
The Beijing Benz E300L Elegant Edition is equipped with a newly developed V6 3.0-liter engine, paired with a 7G-TRONIC seven-speed automatic transmission, featuring numerous luxurious configurations such as reverse imaging, automatic parking assistance, attention alert system, electric trunk closure, nine airbags, and more. It is priced at RMB 596,000.
Additionally, the new SLK200 Fashion Edition, SLK200 Luxury Sport Edition, and SLK350 models are priced at RMB 608,000, RMB 698,000, and RMB 938,000 respectively. The smart Kobe Special Edition, inspired by smart's brand ambassador in China and NBA superstar Kobe Bryant, showcases the sporty brand genes of smart. This model is limited to 500 units in the Chinese market, each priced at RMB 124,000. Furthermore, the GL4504MATIC Prestige Grand Edition also went on sale simultaneously, priced at RMB 1,598,000.