Chinese group seeks to buy more Mercedes dealerships in Germany
FRANKFURT/BEIJING (Reuters) -- Lei Shing Hong, the planet 's biggest Mercedes Benz car dealer group, is looking for sales retailers in Germany to create methods for managing in a mature marketplace, a spokesman for the Chinese team stated.
After years of increase that turned China into the planet 's largest auto market, cooling need is driving dealers in China to search beyond sales of new automobiles to build earnings.
"We're always seeking great opportunities to expand our geographic presence, which comprises Europe," the spokesman said on Wednesday. "Germany is by some space Europe's top automotive manufacturing and revenue marketplace having a higher level of maturity. This tough industry environment is extremely appealing for Lei Shing Hong so that you can learn for the evermore growing Asian markets, particularly China."
Daimler has stated it is going to sell about 40 business-owned Mercedes car dealers within an overhaul of its own German car dealer operations, which have in the past accounted for about half the business name's auto sales in Germany.
Lei Shing currently possesses a German Mercedes car dealer group with factory stores in the eastern towns of Weimar, Erfurt and Arnstadt, which it purchased in January. The business is going to soon purchase additional Mercedes factory outlets in the east, in the towns of Magdeburg, Leipzig, Schwerin, Dresden and Rostock, the Stuttgarter Zeitung reported on Wednesday, mentioning several people knowledgeable about the issue. Daimler has stated it is going to keep its factory stores in Berlin.
The auto-maker had not been immediately available for comment.
Germany's dealership version contains strong gains from promoting utilized authorized automobiles and sales from vehicle components.
IHS Automotive anticipates superior auto sales increase in China to slow to 5% by 2018 from a typical speed of 30 percent in the last decade, pushing local dealers to renovate their business plans.
Before this season, BMW said it'll spend 5.1 billion yuan ($823 million) to its proven China sellers who are struggling from slowing revenue as the market cools and rivalry from unauthorized sellers boosts.
Contact Automotive News
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