Mercedes-Benz Appoints New CEO Amid Sales Drop

Mercedes-Benz Appoints New CEO Amid Sales Drop

Mercedes-Benz Appoints New CEO Amid Sales Drop

How will Jaime Cohen’s leadership shape the future of Mercedes-Benz in Australia?

Mercedes-Benz Australia Pacific has appointed a new CEO, Jaime Cohen, as the brand experiences a decline in sales following its transition to a fixed-price agency model. Cohen, a long-time Mercedes-Benz veteran, takes over from Florian Seidler as the head of Mercedes-Benz’s Australian operations. This article explores the appointment and the challenges faced by the brand.

Mercedes-Benz Appoints New CEO Amid Sales Drop

Jaime Cohen, a Mercedes-Benz veteran, has been appointed as the new CEO of Mercedes-Benz Australia Pacific, replacing Florian Seidler. The brand has been grappling with a decline in sales since the implementation of a fixed-price agency model in 2022.

Cohen, who joined Mercedes-Benz in 1987, has worked in different roles within the company’s passenger vehicles and trucks divisions across the Americas and Germany. Prior to his appointment in Australia, Cohen served as the CEO of the carmaker’s Mexican division for five years.

In a media statement, Cohen expressed his excitement about the new role and the opportunities it presents. He acknowledged his diverse market experience in North and Latin America, as well as Europe, and highlighted his intention to leverage this experience to take Mercedes-Benz Australia and New Zealand to new heights.

Meanwhile, Florian Seidler, the outgoing CEO, will take on the position of head of sales operations for Mercedes-Benz Cars Europe and Smart. During his three-year tenure in Australia, Seidler oversaw the transition to the fixed-price agency model.

The switch to the agency model involved Mercedes-Benz taking ownership of dealership stock and eliminating price negotiations between customers and dealership staff. This change was met with resistance from dealers, who claimed it would lead to higher prices for new models. Subsequently, the brand’s sales in Australia have seen a decline year-on-year.

In 2021, Mercedes-Benz delivered 33,034 vehicles in Australia, which dropped to 31,281 in 2022, and further declined to 28,853 in 2023. The brand’s former dealers took legal action against Mercedes-Benz Australia Pacific, seeking compensation for the impact of the agency model. However, their request was dismissed by Federal Court judge Jonathan Beach in August 2023. The dealers have filed an appeal against the decision, but it is yet to be heard.

The appointment of Jaime Cohen as the new CEO signals Mercedes-Benz’s commitment to addressing the challenges it faces in the Australian market. Cohen’s extensive experience and focus on building upon the existing work of the teams are expected to drive the brand forward in the region.

Mercedes-Benz Appoints New CEO Amid Sales Drop

  • Jaime Cohen succeeds Florian Seidler as the CEO of Mercedes-Benz Australia Pacific
  • Sales have dropped since the brand switched to a fixed-price agency model
  • Cohen brings extensive experience in various roles across different markets
  • The focus is on building on the great work of the existing teams and identifying new opportunities

Mercedes-Benz Australia Pacific has appointed Jaime Cohen as its new CEO amid a decline in sales. Cohen, a Mercedes-Benz veteran, brings a wealth of experience from diverse markets. The brand’s move to a fixed-price agency model has impacted sales, leading to legal action from former dealers. Cohen’s appointment comes at a crucial time as the brand seeks to address the challenges and explore new opportunities in the Australian market.

John Powell

John Powell is a general journalist with a strong focus on national politics. He pursued his studies at the University of Melbourne, where he honed his journalistic skills. With a keen interest in the political landscape, John has become a notable figure in reporting on national politics. His insightful coverage and analysis have garnered attention and respect from both colleagues and readers. With an eye for detail and a dedication to uncovering the truth, John continues to provide informed and balanced reporting on key political issues, making him a valuable asset in the field of journalism.