Mercedes-Benz (Thailand) To End Services To Grey Vehicles

[webfact]

AUTOMOTIVE

Mercedes to end services to grey vehicles

The Nation

BANGKOK: -- Mercedes-Benz (Thailand) Ltd announced today that the company and its authorised dealers will no longer provide after sales services and warranty to grey vehicles of model year 2013 and after, citing the technological complexity of new models which requires highly trained specialists.

It said that this is the second phase of it major after-sales service policy change towards grey (officially called Parallel Imported (PI)) vehicles.

The implementation of an adoption fee for warranty claims of such vehicles in August 2011 marked the first step to the transition to a new handling in the authorised Mercedes-Benz After Sales network. With the introduction of the model year 2013 this process moves to the next step, which brings along significant changes for grey vehicle buyers.

"We adhere to the reliability, honesty and excellence of our service in order to maintain consumer's confidence in the Mercedes-Benz brand. All our cars have undergone comprehensive inspection by certified Mercedes-Benz technicians to assure our customers with the foreseeable advantages of buying from an authorized dealer. We will continue to put our relentless effort to raise the standards of our after-sales service because driving safety has always been and will always be a key mission at Mercedes-Benz," said Alexander Paufler, president & CEO of Mercedes-Benz (Thailand).

In a statement, the company said that this policy applies without any exception, and includes basic services such as engine oil changing and general maintenance as well as warranty claims. Thus the process of adoption fee to maintain warranty or service rights will be ceased. Affected cars are PI vehicles of model year 2013, or in other words those with a production date starting between June and September 2012 and afterwards. The exact manufacturing date for each model can be inspected by our authorized dealers nationwide.

It added that the policy changes are implemented to extend the service quality for Mercedes-Benz cars in Thailand and to protect the prestigious brand image. Starting with model year 2013, the company will introduce many new technologies that require extensive training of the service of the authorized dealers and a direct access to know-how and certified machinery by the Daimler Group. The authorised dealers have to ensure a constant investment in training and equipment. Mercedes-Benz (Thailand) is committed to provide ideal service to their customers. This requires a consistent update of product information which is generally not available for Parallel Imported vehicles. As a result, the company can only guarantee the high quality and specialized After Sales Service at the official Mercedes-Benz Dealer Network.

PI vehicles of model year 2012 and before keep their right of receiving professional and customised after sales at the official dealer network. This policy will also have no effect to those who have already been accepted for warranty by paying the adoption fee.

-- The Nation 2012-07-19

[LucidLucifer]

I can't wait to see if Mercedes stick to this after the first hi-so throws their toys out of the pram when they refuse them dealer support.

[stevenl]

Makes sense for them to try and push more vehicles to them directly instead of grey.

[Lammbock]

What is the advantage of grey (officially called Parallel Imported (PI)) vehicles?

What is that mean exactly?

[KarstenBoAndersen]

Grey import is when another company then Mercedes Thailand import a car !

There is many of these importers in Thailand, i do not know if they are much cheaper then the official dealers etc.

But i think it is fair to draw a linem why should they actually service cars other had sold for free ??

[phl]

i think a fair decision.

As OP mentioned, vehicles are getting more complex and do require technical skills to work on it.

Authorized centers, train their staff to work on the vehicles they sell and do offer satisfaction and warranty.

They can not in their right mind offer guarantee for work done on vehicles for which mechanics have not been trained.

[harrry]

Another company which will not support its product. You make it, it breaks..you fix it should apply to reputable companies.

[John 1]

Another company which will not support its product. You make it, it breaks..you fix it should apply to reputable companies.

I agree it should not matter where the vehicle is bough from they want all of the cake. What if I bring my MB from Singapore they won't service it?

[stevenl]

Another company which will not support its product. You make it, it breaks..you fix it should apply to reputable companies.

Sure they will fix it, just take it to Stuttgart.

[kartman]

'Requires highly trained specialists' ,what their saying is they dont want an all singing & dancing spec vehicle turning up and have to admit they can't fix it.

[snowflake]

The grey import e250 coupe is around 2,6 millions.. Now look at the dealer...my friend just bought one... He took it to benz in ha yai to service- they said sure, just pay 100000thbant and we will look at it... He took it to a local shop... Few k's less...

The original benz in thailand is just a rip off

Sent from my GT-S5660 using Thaivisa Connect App

[Woodsie888]

'Requires highly trained specialists' ,what their saying is they dont want an all singing & dancing spec vehicle turning up and have to admit they can't fix it.

Whilst I understand your interpretation of the situation, I don't see it that way at all, in my opinion what they're actually saying is that they are tired of insisting their dealers keep investing in product, facilities, service, equipment & staff training only to have the same dealers expected to service cars which they have not derived any income from. Warranty work for all Dealers of any brand is usually loss making. Also worth noting is the fact that once out of warranty, most cars leave the dealer network and are serviced by independent facilities because they are less expensive. The whole grey market situation is a lose/lose deal for the authorised dealer.

Considering their investment in TH, MB are obviously very tired of the unfair advantage the grey market dealers currently enjoy.

[Woodsie888]

The grey import e250 coupe is around 2,6 millions.. Now look at the dealer...my friend just bought one... He took it to benz in ha yai to service- they said sure, just pay 100000thbant and we will look at it... He took it to a local shop... Few k's less...

The original benz in thailand is just a rip off

Sent from my GT-S5660 using Thaivisa Connect App

Please show an example of an E250 Coupe @ 2.6million.

I'm fairly certain you are incorrect.

[arkom]

The grey import e250 coupe is around 2,6 millions.. Now look at the dealer...my friend just bought one... He took it to benz in ha yai to service- they said sure, just pay 100000thbant and we will look at it... He took it to a local shop... Few k's less...

The original benz in thailand is just a rip off

Sent from my GT-S5660 using Thaivisa Connect App

Please show an example of an E250 Coupe @ 2.6million.

I'm fairly certain you are incorrect.

A grey market e-coupe goes for about 4 million in bangkok.

[overherebc]

The grey import e250 coupe is around 2,6 millions.. Now look at the dealer...my friend just bought one... He took it to benz in ha yai to service- they said sure, just pay 100000thbant and we will look at it... He took it to a local shop... Few k's less...

The original benz in thailand is just a rip off

Sent from my GT-S5660 using Thaivisa Connect App

Lived in Germany for a good few years. A Benz was a taxi.

[Morakot]

Did know they were selling them in grey.

[harrry]

Yes they must be scxared that the reliability of grey toyotas is more. It is such a popular colour.

[snowflake]

The grey import e250 coupe is around 2,6 millions.. Now look at the dealer...my friend just bought one... He took it to benz in ha yai to service- they said sure, just pay 100000thbant and we will look at it... He took it to a local shop... Few k's less...

The original benz in thailand is just a rip off

Sent from my GT-S5660 using Thaivisa Connect App

Please show an example of an E250 Coupe @ 2.6million.

I'm fairly certain you are incorrect.

Beause i am to lazy to walk to his house- no picture today... Tomorrow should be.ok... Andi am now sure he paid less than 3millions for the car...

Sent from my GT-S5660 using Thaivisa Connect App

[Woodsie888]

The grey import e250 coupe is around 2,6 millions.. Now look at the dealer...my friend just bought one... He took it to benz in ha yai to service- they said sure, just pay 100000thbant and we will look at it... He took it to a local shop... Few k's less...

The original benz in thailand is just a rip off

Sent from my GT-S5660 using Thaivisa Connect App

Please show an example of an E250 Coupe @ 2.6million.

I'm fairly certain you are incorrect.

Beause i am to lazy to walk to his house- no picture today... Tomorrow should be.ok... Andi am now sure he paid less than 3millions for the car...

Sent from my GT-S5660 using Thaivisa Connect App

I don't wish to sound too pedantic, but a photo of a car is not going to illustrate the 2.6 million as you claimed. More information please?

[arkom]

The grey import e250 coupe is around 2,6 millions.. Now look at the dealer...my friend just bought one... He took it to benz in ha yai to service- they said sure, just pay 100000thbant and we will look at it... He took it to a local shop... Few k's less...

The original benz in thailand is just a rip off

Sent from my GT-S5660 using Thaivisa Connect App

Please show an example of an E250 Coupe @ 2.6million.

I'm fairly certain you are incorrect.

Beause i am to lazy to walk to his house- no picture today... Tomorrow should be.ok... Andi am now sure he paid less than 3millions for the car...

Sent from my GT-S5660 using Thaivisa Connect App

I don't wish to sound too pedantic, but a photo of a car is not going to illustrate the 2.6 million as you claimed. More information please?

Maybe they are confused with the C class. Last I checked E class are around 4 mil.

[Fgis]

Pure bullsxit..Who believes this liar official reason...

[Woodsie888]

Pure bullsxit..Who believes this liar official reason...

Well.....they're not going to tell you the real reason are they? They would prefer a level playing field, something not easily done here.

[Payboy]

What is the advantage of grey (officially called Parallel Imported (PI)) vehicles?

What is that mean exactly?

Grey vehicles are cheaper because the parallel importers paid less tax by under-invoicing. Mostly sold with better or full options compared to official dealers, but shorter warranty period. Service during warranty period is covered only at the grey importers garage.

[Woodsie888]

What is the advantage of grey (officially called Parallel Imported (PI)) vehicles?

What is that mean exactly?

Grey vehicles are cheaper because the parallel importers paid less tax by under-invoicing. Mostly sold with better or full options compared to official dealers, but shorter warranty period. Service during warranty period is covered only at the grey importers garage.

You've got it in one, and the manufacturer's are cheesed off about the situation too.

It's worth noting that this is a world wide problem though, not just Thailand.

When the € was 1.75 to the £, UK Main dealers had a miserable time as well. The difference being no need for under invoicing etc. It was purely currency related. Now the € is much stronger against the £ there are very few cars coming in to the UK from Europe independently.

If invoicing was properly checked, there would be no grey market at all in South East Asia, Pakistan, Eastern Europe and a number of other regions.

It will be most interesting to see the outcome of this current 'investigation'. Pretty much nothing I should think. Too much money involved.

A very simple solution to solve the problem is for the Govt to issue fixed CIF prices for all makes and models. That way they don't care how much your 'invoice value' is.

Trouble is, some people would have a dramatically reduced income if this was implemented and a lot of fancy showrooms would soon be vacant.

[Tanaka]

'Requires highly trained specialists' ,what their saying is they dont want an all singing & dancing spec vehicle turning up and have to admit they can't fix it.

Whilst I understand your interpretation of the situation, I don't see it that way at all, in my opinion what they're actually saying is that they are tired of insisting their dealers keep investing in product, facilities, service, equipment & staff training only to have the same dealers expected to service cars which they have not derived any income from. Warranty work for all Dealers of any brand is usually loss making. Also worth noting is the fact that once out of warranty, most cars leave the dealer network and are serviced by independent facilities because they are less expensive. The whole grey market situation is a lose/lose deal for the authorised dealer.

Considering their investment in TH, MB are obviously very tired of the unfair advantage the grey market dealers currently enjoy.

This is all wrong. This same subject was on the wall in Europe too some 20 years ago. I worked for MB there then. They said they would not serve grey imports. Until someone with a brain thought, Hey, it is from the after sales services we make the money, n ot from sales of new cars. And that makes sense. And common sense was never in Thailand not even with a German MD. Shortsighted as always. And the text does not make sense either. Saying that the new models require more knowledge and tools to be served. Yeah, so? What has that to do with anything? These very skilful Thai mechanics would be competent to work on the new models wether they be imported by MB or someone else. The cars would still be MBs built in the same factory! Is it a requirement for a German boss to leave his brain in Germany before starting work in Thailand?

[Woodsie888]

'Requires highly trained specialists' ,what their saying is they dont want an all singing & dancing spec vehicle turning up and have to admit they can't fix it.

Whilst I understand your interpretation of the situation, I don't see it that way at all, in my opinion what they're actually saying is that they are tired of insisting their dealers keep investing in product, facilities, service, equipment & staff training only to have the same dealers expected to service cars which they have not derived any income from. Warranty work for all Dealers of any brand is usually loss making. Also worth noting is the fact that once out of warranty, most cars leave the dealer network and are serviced by independent facilities because they are less expensive. The whole grey market situation is a lose/lose deal for the authorised dealer.

Considering their investment in TH, MB are obviously very tired of the unfair advantage the grey market dealers currently enjoy.

This is all wrong. This same subject was on the wall in Europe too some 20 years ago. I worked for MB there then. They said they would not serve grey imports. Until someone with a brain thought, Hey, it is from the after sales services we make the money, n ot from sales of new cars. And that makes sense. And common sense was never in Thailand not even with a German MD. Shortsighted as always. And the text does not make sense either. Saying that the new models require more knowledge and tools to be served. Yeah, so? What has that to do with anything? These very skilful Thai mechanics would be competent to work on the new models wether they be imported by MB or someone else. The cars would still be MBs built in the same factory! Is it a requirement for a German boss to leave his brain in Germany before starting work in Thailand?

I think you've missed the whole issue.

Complete nonsense.

[arkom]

'Requires highly trained specialists' ,what their saying is they dont want an all singing & dancing spec vehicle turning up and have to admit they can't fix it.

Whilst I understand your interpretation of the situation, I don't see it that way at all, in my opinion what they're actually saying is that they are tired of insisting their dealers keep investing in product, facilities, service, equipment & staff training only to have the same dealers expected to service cars which they have not derived any income from. Warranty work for all Dealers of any brand is usually loss making. Also worth noting is the fact that once out of warranty, most cars leave the dealer network and are serviced by independent facilities because they are less expensive. The whole grey market situation is a lose/lose deal for the authorised dealer.

Considering their investment in TH, MB are obviously very tired of the unfair advantage the grey market dealers currently enjoy.

This is all wrong. This same subject was on the wall in Europe too some 20 years ago. I worked for MB there then. They said they would not serve grey imports. Until someone with a brain thought, Hey, it is from the after sales services we make the money, n ot from sales of new cars. And that makes sense. And common sense was never in Thailand not even with a German MD. Shortsighted as always. And the text does not make sense either. Saying that the new models require more knowledge and tools to be served. Yeah, so? What has that to do with anything? These very skilful Thai mechanics would be competent to work on the new models wether they be imported by MB or someone else. The cars would still be MBs built in the same factory! Is it a requirement for a German boss to leave his brain in Germany before starting work in Thailand?

The bit about new models needing more knowledge and tools. Does that mean MB Thailand makes lower quality cars compared to imports? Haha

[Woodsie888]

'Requires highly trained specialists' ,what their saying is they dont want an all singing & dancing spec vehicle turning up and have to admit they can't fix it.

Whilst I understand your interpretation of the situation, I don't see it that way at all, in my opinion what they're actually saying is that they are tired of insisting their dealers keep investing in product, facilities, service, equipment & staff training only to have the same dealers expected to service cars which they have not derived any income from. Warranty work for all Dealers of any brand is usually loss making. Also worth noting is the fact that once out of warranty, most cars leave the dealer network and are serviced by independent facilities because they are less expensive. The whole grey market situation is a lose/lose deal for the authorised dealer.

Considering their investment in TH, MB are obviously very tired of the unfair advantage the grey market dealers currently enjoy.

This is all wrong. This same subject was on the wall in Europe too some 20 years ago. I worked for MB there then. They said they would not serve grey imports. Until someone with a brain thought, Hey, it is from the after sales services we make the money, n ot from sales of new cars. And that makes sense. And common sense was never in Thailand not even with a German MD. Shortsighted as always. And the text does not make sense either. Saying that the new models require more knowledge and tools to be served. Yeah, so? What has that to do with anything? These very skilful Thai mechanics would be competent to work on the new models wether they be imported by MB or someone else. The cars would still be MBs built in the same factory! Is it a requirement for a German boss to leave his brain in Germany before starting work in Thailand?

The bit about new models needing more knowledge and tools. Does that mean MB Thailand makes lower quality cars compared to imports? Haha

No, it means MB TH and their dealers are required to ramp up their spending on training and electronic service equipment for the new models and they don't feel like providing it free of charge to owners who have purchased their lovely new car outside the local dealer network. And why should they?

It's a funny thing, but buyer's love to buy outside the network and tell all their mates what a great deal they have done, but as soon as they hit a bit of bother, they charge off to the authorised dealer seeking assistance.

[stevenl]

The bit about new models needing more knowledge and tools. Does that mean MB Thailand makes lower quality cars compared to imports? Haha

No, it just means MB Thailand is using that as an excuse to try and move sales from the grey market to their own house. His whole story is just dressing up for that one purpose of MB. And this makes sense from their perspective.

[VocalNeal]

The bit about new models needing more knowledge and tools. Does that mean MB Thailand makes lower quality cars compared to imports? Haha

Maybe lower spec. C200? I think that is a taxi in Germany. So someone imports one that is not available here. Some whiz bang E500 or.. a Blue tech diesel and they don't have anyone who knows what to do with it.

That being said the whole "you didn't buy it from us so we won't service it" is nothing new to "older" motorbike guys here.

The whole thing is a moot point unless someone on here has ordered a 2013 grey market import.