German Dealers Victorious , Opel Surrenders

Bertel Schmitt
by Bertel Schmitt

Opel sales chief Matthias Seidl

The rebellion of German Opel dealers against a new, complicated and – in the dealers’ views – disastrous distribution system was victorious. Opel’s sales chief Matthias Seidl withdrew the discredited and disdained design. “Dealers succeeded with their demands for a simpler system,” writes Automobilwoche [sub].

The nixed system was said to destroy dealer margins and to be so complicated that “I have to hire a mathematician to understand it,“ as an enraged Opel dealer told Automobilwoche [sub]. Opel dealers threatened to stop selling Opel cars.

In the wake of the European Block Exemption Regulation, the regulatory landscape of the European motor trade became much more liberal than that of the U.S.A. Pretty much anybody can sell cars. OEM cannot block dealers from selling competing brands. OEMs can set dealer standards (under the watchful eyes of the EU), but those can be easily circumvented with a much easier service contract with the OEM. Many German Opel dealers already sell Volkswagen.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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 2 comments
  • Detroit-X Detroit-X on Feb 06, 2013

    Gee. It all looked so nice in that Powerpoint presentation.

  • Lorenzo Lorenzo on Feb 06, 2013

    I wonder, other than appropriating the dealers' profit margins, what was the purpose of the distribution scheme, as part of the overall master plan for Opel? They backed off so quickly, it doesn't seem to be a key part of the Girsky/Akerson plan, whatever THAT is, but it sounds too complicated for a straight money grab.

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