Mercedes-Benz agency verdict is in

MERCEDES-BENZ has won its landmark case fought against it by 38 of its dealers alleging that the car-maker had cost them $680 million in lost goodwill caused by the introduction of the agency retail model to their business.

Justice Beach noted that the applicants (dealers) made a strong case but that they lost on the law.

He made reference in his judgement to the Franchise Code of Conduct and inferred that the loss was attributed to elements of the code that needed to be changed.

The action brought by 38 of Mercedes-Benz’ Australian dealers against Mercedes-Benz Australia Pacific alleged that a combined $650 million in goodwill was taken from them and transferred to Mercedes-Benz under the agency sales agreements which they claimed they were allegedly forced to sign or have their Mercedes-Benz businesses taken from them.

Justice Jonathan Beach in his decision said that he found against the four exemplar applicants (the dealers) and their claims are to be dismissed.

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