Kallenius said the agency approach fits in with Daimler’s overall efforts to digitalize its business and distribution model.
“I’m a very strong believer that everything that is transactional when it comes to car sales and distribution needs to be digitized,” he said. “This removes friction, improves the customer experience and lowers costs. So, regardless of which sales model we contractually choose, we are on the path toward a fully digitized transaction.”
A recent study by Roland Berger found that the agency model could reduce distribution costs by 1 to 2 percent in the short term and up to 10 percent in the long term.
He said he recognized the importance of the physical sales experience for a luxury brand, which still needs to offer customers the opportunity to speak directly to expert salespeople.
“If you want a test drive, it needs to be made available,” Kallenius said. “With this model you still showcase the product, but you take away the friction during the transaction, which is something that most customers don’t look forward to.”