Added exposure for NSW Benz base

Mercedes-Benz has committed to a timely investment in its local dealership concerns, during the year the company celebrates 50 years in Australia. The marque is furthering nationwide investment in its dealership network and will open a new central dealership in Sydney, taking over a larger site nearby the city's airport.

The new Sydney dealership in O'Riordan Street will feature two levels of showroom for new cars, 2600 square metres for used cars and a 30-bay workshop -- built with enviro-friendly practises in mind such as rainwater harvesting for the dealership's wash bays. The company expects the new outlet to open in 2010.

"Mercedes-Benz has been a fixture in Australia for almost 50 years, "said company CEO Wolfgang Schrempp. "The last half century has seen enormous growth for our brand here."

Schrempp says the Sydney investment isn't the first time the brand has undertaken "such a large and important project" with one of its dealers.

"We have been updating and investing in retail dealership facilities for some years now," said Schrempp.

Mercedes-Benz introduced the Autohaus dealership facility design in 2003 and recently opened its Airport Express facilities in Sydney and Melbourne. According to Schrempp, another 14 Benz retail partners will undergo developments to incorporate the Autohaus design concept during 2008.

Schrempp claims up to this year investment in redeveloping the brand's dealership network amounted to $95 million. "The magnitude of these undertakings is enormous," he said.

Over $110 million will be committed to new Mercedes-Benz retail facilities nationwide this year, with almost 50 per cent of the company's retail investment plans going to dealers in New South Wales.

Schrempp also said a further $70 million is scheduled to be spent on new dealer showrooms around the country from next year onwards.

In a case of 'we did it first', Schrempp denied his company was following rival Audi in its dealership investment drive.

"We [previously] invented our Autohaus concept and now we're trying to have it [the style] all over.

"We also now have some specialities here in Australia to take care of like environmental topics and normally you can only do that when you're refurbishing the dealership network, and that's why the investment is and will be pretty high," he said.

Nor will Mercedes-Benz allow the new Sydney centre to submerge efforts of its smaller authorised dealers.

"We have a clear understanding of our relationship with our dealers," said Schrempp. "It's absolutely not to attack our friends."

The company intends maintaining the same number of dealerships (55) currently operating around Australia. The former new-car showroom in Zetland will be taken over as a Ford dealership.

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