Mercedes to get new-image showrooms in Tuam St

Press, 14 February 1986, Page 19

Mercedes to get new-image showrooms in Tuam St

Although the MercedesBenz has been part of the city street scene for many years, the presence of the marque in terms of bricks and mortar has been low key when compared with that of some of the other local car firms.

Daimler-Benz, the Stuttgart Mercedes manfacturer, and Cable-Price, the local franchise-holder, have always adopted a conservative marketing approach, probably because the Mercedes-Benz is an upper price bracket luxury car that in New Zealand enjoys a steady rather than exciting demand. Like a number of the other luxury makes sold here, the Mercedes is a make that enjoys repeat rather than conquest sales.

In other words, a Mercedes owner is likely to trade the old car in on a new model, than, say, a BMW. or a Jaguar and, indeed, that seems to be the general pattern in the case of higher-priced luxury cars although, of course, there are always exceptions. However, since the Government’s plan for the future of the motor industry was implemented, starting a little over a year ago, the marketing pattern has showed signs of change. Under the plan, more completely-built-up cars are entering the country and they are mainly from Europe.

Just as the motor industry plan has gone a long way towards the trans-

formation of the locallyassembled popular car market in favour of buyers rather than sellers, the same sort of thing has occurred in the luxury imported car sector. Although the Mercedes is a low volume seller, compared with the less expensive and more popular makes, and local sales probably do not average many more than one a week, every sale makes an important contribution to the economic viability of the automotive division of Cable-Price. Like mankind, the motor car has evolved from what went before it. Although no one invented it, a German engineer, Carl Benz, emerged as the man with the ultimate desire to make a selfpropelled vehicle. He developed a four-stroke engine and in 1885 installed it in the back of a tricycle. At the same time another German engineer, Gottlieb Daimler was working independently and he developed a lighter and faster revving engine. Paradoxically the two men never met, but through them was formed certainly the oldest and probably the most significant automotive firm in the world. Thus it is appropriate that, in this centennial year, Mercedes-Benz activities should take on a new image in Christchurch. The company’s Tuam Street premises are about

to be extended dramatically. Cable-Price is also a Toyota dealer and in the past these Japanese cars have shared a showroom and servicing facilities with the German luxury models. In its extended premises Cable-Price will separate Mercedes and Toyota activities into their own showrooms and servicing departments. The general manager, Mr D.G. Brownlie, is not only confident that the new arrangements will enhance the service that his branch gives to owners of both makes but also gives Mercedes the presence in the city that the marque deserves. The existing showroom, now accommodating Mercedes and Toyota models, will be refurbished and devoted to the Japanese make, while on the Tuam Street front there will be a completely new showroom for Mercedes and alongside it an open courtyard for the display of 10 or 12 used Mercedes models. The Tuam Street extensions will comprise singlestoreyed premises which are in line with the Daimler-Benz philosophy as far as its retail outlets are concerned. In fact, the design of the showroom will comply with the general Mercedes pattern found elsewhere in the world. It will be luxurious but functional, one of the features being a slate, tiled floor. In the established build-

ing that will house the Toyota showroom, the remainder of the ground floor will be gutted and rebuilt as a Mercedes servicing area while .the upper level, accessible to cars by way of a ramp, will be refurbished and be used for its traditional purposes. Cable-Price has conducted a service station on the Tuam Street frontage, but this will be demolished to make way for a diagonal entrance to the Toyota showroom. Once the petrol pumps have gone and the new complex is complete, the firm will retain a single petrol pump only to serve company vehicles. Last year, 789 Mercedes cars were imported into New Zealand, but of the total, 560 were imported by private individuals, so new vehicle sales amounted to 229 cars. BMW, another West German manufacturer of quality cars actually sold 513 new cars, while private individuals brought in another 242. Thus, BMW was by far and away the most popular European car imported last year and that was due in no small part to the aggressive marketing and public relations policies adopted by Auck-land-based BMW New Zealand Ltd. The company works closely with not only its Munich-based headquarters but also with BMW Australia Ltd and this close relationship has paid dividends, as the

1985 sales figures clearly demonstrate. Although relations with Stuttgart have always been close, Cable-Price proposes to avail Itself of the vast storehouses of experience of MercedesBenz in Australia in future. Mr Brownlie says arrangements are already in hand for his servicing people, who work on the German cars, to undergo technical courses on the latest Mercedes models on the other side of the Tasman. Similarly, sales and marketing staff will also enjoy a much closer relationship with their Australian opposite numbers than has been the case in the past.

“What we have in mind and, in fact, what has been decided, will be advantageous to all Mercedes owners and prospective owners. We aim to make Christchurch the South Island headquarters for Mercedes,” said Mr Brownlie.

“Apart from all that, our new image in Tuam Street will go a long way to brightening up a somewhat drab section of the thoroughfare and as other businesses in the area follow suit — and some have already enhanced the street — it should become a much more attractive area than it is at present.

“That of course, is to the general betterment of the commercial image of our city.” he concluded.