Shop absorption up to 77% for Mercedes-Benz's dealers

The expansion of Mercedes-Benz's servicing centre network by six new centres since the beginning of this year has generated a decline in load of by servicing centres, from 68% in the first half of last year to 62% at present. However, the number of hours worked in Mercedes-Benz servicing centres rose by almost 6% in the first quarter of this year, whilst the overall market of servicing centres recorded a decline in activity. "Six new authorised Mercedes-Benz centres were opened in the first quarter of this year, so the load of the overall network fell from 68% to 62%. This is a temporary situation because these centres need some time before they can work at normal capacity," said representatives of Mercedes-Benz Romania. On developed markets, the majority of dealers cover their expenses almost entirely from the servicing operations, with the profit coming from car sales. Therefore, even if the volume declines, dealers can still make a profit thanks to cars sold in previous years. "Part of expenses is covered by the amounts derived from servicing operations, which translates into 'shop absorption'. In 2008 it reached 60%, and in the first quarter of 2009 it went up to 77%," company data reveal.