40 percent of Maybach dealers shut down
hen Mercedes launched the Maybach brand in 2001, it had 71 U.S. dealers and a lofty goal of 600 units a year. Today, only 42 of those remain. The other 29 U.S. dealers have given up their franchises, Mercedes USA CEO Ernst Lieb told Automotive News.

Mercedes sold just 146 Maybachs in 2006, still far from its annual target. Lieb told the trade publication at the Frankfurt auto show his company negotiated with dealers on a case by case basis for terms of their buyout. One dealer said he got just 25 cents to the dollar in terms of his original investment.

Dealer Chuck Ghesquiere said his overall sales of seven cars were not enough to justify the studio, demo car, and spare parts.
A Mercedes spokeswoman said the company is now happy with the number of dealers, no immediate plans for further cuts.


Begining of End for Maybach

It’s no secret Maybach has been a major flop for Mercedes-Benz. At a time when Rolls-Royce and Bentley are both making record sales, Maybach has struggled to move less than 800 cars since its launch in ’02. The decision has finally come to cull a large portion of Maybach franchises in the U.S., with 29 of the original 71 stores being closed.


Most of the Maybach stores also sell Mercedes models but dealers had to initially fork out over half a million dollars to accommodate the ultra-luxury label. Last year, total sales in the U.S. amounted to just 146 cars, well short of the initial goal of 600 units a year.

Speaking with Automotive News at the Frankfurt Motor Show last month, Mercedes’ U.S. Chief Ernst Lieb revealed those dealers affected by the decision will be compensated but most are expected to have lost significant investment. One dealer, who sold just seven Maybachs over five years, explained that the revenue wasn’t enough to cover the costs of the studio, demo car and inventory of parts.

One of Maybach’s key problems is that it essentially offers a bloated Mercedes-Benz at an exuberant price tag. The Maybach looks too much like a Mercedes and doesn’t offer anything significant over a fully-loaded S-class. Indeed, many critics have argued that the Maybach cars should have simply been branded with the familiar tri-star logo and the company could have prevented spending money on wasteful branding exercises


Mercedes close to absorbing Maybach
At a time when Rolls-Royce and Bentley are both making record sales, Stuttgart’s luxury-limo brand Maybach seems to be sharing in none of the glory. According to executives at Mercedes-Benz it doesn’t cost much to keep Maybach on the market, but its a very different story when you head down the corporate ladder to over seventy American dealers who spent more than $500,000 in creating unique studios to showcase the car.

Initially expecting to sell over 500 cars a year in the U.S. alone, Maybach has come nowhere close to that figure with less than 800 cars being sold altogether so far. This despite the recent addition of two new models, the 57 S and 62 S (the ‘S’ standing for ’special’).

Rumours suggest that parent brand Mercedes-Benz may absorb the Maybach brand and implement it into its own lineup as a range topper. However management currently seems to be keeping quiet about the whole situation, according to a report by Automotive News. Only time will tell whether the revived brand name will continue to live on, or is put to rest once again.