Sky's the limit: Benz boss

New Mercedes-Benz Australia Chief Hans Tempel says there is no 'glass ceiling' for the local prestige car operations. In contrast to his counterparts at some other premium brands, the 54-year-old 30-year-plus Daimler Corp stalwart believes the local marketplace is ripe for strong growth for the three-pointed star.

Indeed, in contrast to his last posting as head of Mercedes-Benz Japan, where the marque's sales have slumped from over 50,000 units per annum to less than 30,000 in three years, the new boss is bullish about the brand's prospects Down Under.

"The sky is the limit," the new Benz boss told the Carsales Network in an interview this week.

"Maybe there is a saturation level given on a determined number of population, but population in Australia is growing [and], so will our business."

The one-time truck salesman sees immigration as a strong source of new Benz customers.

"In a country where you have people coming in, obviously they come with the spirit they want to live better... They come with the aspiration that their children are going to live better than they do... Cars are a wonderful symbol to show to yourself and others that you've made it. I wouldn't believe there is a limit for luxury cars [in Australia] which we will reach any time soon," he stated.

Tempel says Benz's local growth will be based on "three pillars" -- products, dealer network and brand. But he also notes that government and taxation levels have a role to play in the future fortunes of his brand.

"I would like to see a situation where taxation does not artificially interfere with a natural demand structure. So from that point of view, there's a luxury tax situation in Australia that certainly disadvantages our business.

"If the economy's growing, people are going to make more money and this tax will be less significant [to their purchasing decision]. But it's not a good thing to have a taxation [system] in place which definitely favours some [brands] and is a disadvantage for us in particular."

Tempel stopped short of labelling the Luxury Car Tax as a tax on technology, but made it clear he will continue to support Mercedes-Benz Australia's stance that it should be phased out in favour of a carbon-dioxide-emissions based regime.

"I've [already] been dealing with this question in this country and also in Japan. That [a CO2-based tax] has always been our request: put taxation on the real criteria and make it simple. Rather than tax any kind of segment or price range or what have you.

"It's not fair...  I mean why should somebody who buys a car carry a higher burden to fund a state budget than somebody who buys an apartment, or a house, or a plane.

"This [Technology] is a big thing for the car industry as a whole, and one of the biggest challenges we are dealing with... What is absolutely necessary is that these [new] technologies should not be taxed. Tax should concentrate on what was the result of those technologies, which is CO2 at the end of the day...

"Any kind of taxation that is particularly favouring some technology versus others would definitely be against our interests and we would speak up to try and not allow this to happen." Tempel stated.

Tempel says changing the taxation status quo will be something in which he is personally involved.

"At Mercedes-Benz we've always considered this as part of our claim to be the leading brand. It's not only about driving fast in a circle; it's about getting involved in the discussions which are running in society about these kinds of issues.

"This is exactly what Horst [von Sanden, Mercedes-Benz cars chief Down Under] and his team have done in the past. And I've been doing the same in Japan. There I ran the importers' association and had a lot of discussion with government representatives. I would definitely get involved in this [here]."

An LCT repeal aside, Tempel says Mercedes' best growth opportunities are still to arrive Down Under.

"The real opportunity for us are the cars that will replace the current A and B-Class [ranges]," he told the Carsales Network.

"We cannot change LCT [quickly] but we can ensure we have products that [a wider range of] customers want. Products that are under the tax threshold or offer fuel economy that slots the models in under the [7.0L/100km LCT discount] threshold."

Tempel is confident his brand's future model line-up will not be hamstrung by the situation which saw Benz's compact SUV, the GLK, built in left-hand drive only.

"For an importer a significant part of your success is how you manage your [relationship with] headquarters... How you manage your manufacturer. I guess that's part of my role, or that's an area where I will support our guys here very strongly.

"RHD markets are becoming more important for us. Australia is a growing market, the UK has become a very significant market. [But] RHD does not only mean you have the wheel on the 'wrong' side of the dashboard, it's the entirety of the car, the  interior's different and many things under the bonnet are different, and that requires time and again that we stand up and say look, this is what we need."

Pic: Tempel (left) with Dr. Dieter Zetsche, Mercedes-Benz Chairman

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