Merc’s Agency Model: Where Australia Leads We Follow? is Australia’s leading car website and it is running a major story on local dealers’ fight against Merc’s plans to up the ante on the agency model for car sales.  A group of dealers is taking legal action against Merc as it is said to be planning to switch to a non-negotiable ‘fixed-price’ business model…the early stages of what is feared by many to be a global roll-out of the agency model.

Around 80% of Australian Merc dealers are said to be in the battle which could expose just how easily long-standing franchise agreements can be ripped up by multinational car makers. This is a case we should all keep an eye on as the potential for dealerships to close down, leaving customers high and dry, affects us all.