Daimler Enhances Dealer Network in Mexico, Claims Market Lead
As part of that effort, Mexico’s independent Freightliner dealers have agreed to provide the same level of support to each other’s fleet customers to offer consistent service throughout the country, even as they continue to compete among themselves.
That agreement is part of a “mutual promise” to enhance the quality of service across the country’s Freightliner dealer network, said Stefan Kürschner, president of Daimler Trucks Mexico.
“Selling a truck is one thing, but maintaining a relationship is another,” he said here Dec. 8 during a briefing with Mexican, U.S. and Canadian reporters. “The dealer network is extremely crucial to our success going forward.”
These customer service initiatives are part of Daimler’s push to establish itself as Mexico’s market leader.
Through November, Freightliner’s year-to-date share of the Mexican Classes 4-8 truck market climbed to 36% from 29.1% a year earlier. While sales figures for other OEMs were not available, Kürschner said that 36% figure represents the market share lead in Mexico. In Class 8 alone, Freightliner’s share rose to 36.2% from 28.4%, he added.
At the same time, the overall truck market in Mexico has continued to expand.
Year-to-date, industrywide Classes 4-8 sales had increased 18.5% from a year earlier, to about 30,190 units, Kürschner said. In Class 8, year-to-date sales stood at 24,012, a 20% gain.
He predicted similar growth levels for 2017.
Despite that expansion, Mexico’s new truck market still is far too small given the nation’s population and its need for newer vehicles, Kürschner said.
“I think an economy this size should have a market which is at least around 60,000 [units], and not around 30,000 as it is represented today,” he said.
Given the age of the nation’s truck fleet, there is a growing urgency for operators to replenish their fleets and put newer, safer trucks on the road.
“There must be a higher rate of renewal and an overall bigger market to do that,” Kürschner said.
Several members of Daimler Trucks Mexico’s executive dealership council discussed the steps their businesses have taken recently to improve the brand’s service network.
In the past, fleets relied primarily on their local dealerships where they purchased their trucks, but the mutual service agreement is changing that, said Jaime Tamez, president of Difrenosa, a dealer operating in northeastern Mexico.
“Each customer can be anywhere in Mexico at any dealership and will receive service as they would in their hometown,” he said.
Fernando Zapata of Zapata Camiones also cited the advantages of the shared service commitment among rival dealers.
“Of course we compete, but hand in hand, making make sure that in that competition the customer or the brand never gets hurt,” he said.
The dealer network also has moved to a unified dealer management system, said Alejandro Rivera of Camiones Rivera, a dealer based in Puebla. That system enables easier communication between the manufacturer and dealers and results in better service attention for customers, he said.
Fernando Jiménez, director general at Jiménez Autocamiones, said the sharing of information between Daimler and its dealers has improved the flow of key information, such as the status of orders, policies and technical information.
“We can deliver that very clearly to our customers,” he said.
José Luis González, director general at Euro Centro Camionero, said collaboration between the OEM and dealers also has improved a variety of business processes, including a 70% reduction in the amount of paperwork attached to each truck warranty.
In addition to those initiatives, dealers said they also have invested in more specialized technicians, better tools and practices and improved parts availability to help keep customers’ trucks on the road.
While the need for fleet replenishment has driven growth in truck sales, uncertainty caused by the weakening of the peso has posed a challenge.
To help alleviate those concerns, Daimler Trucks Mexico last year began quoting prices for its Freightliner products in pesos rather than U.S. dollars.
That also greatly simplified administrative work for taxes and accounting, which previously required two separate programs, one in dollars and one in pesos, Zapata said. “We and our customers can truly forget about exchange rates.”
While the discussion centered on Mexico’s truck market, Daimler declined to comment specifically on how the results of the recent U.S. elections might affect U.S.-Mexico trade. President-elect Donald Trump has been a harsh critic of the North American Free Trade Agreement.
“Daimler Trucks North America, as any good corporate citizen, will continue to engage in constructive dialogue with governments in all countries in which it operates,” DTNA spokesman Dave Giroux said.
