3 compelling reasons why this brand has dealers fired up about the future

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Morale among auto technicians is slipping…

Per WrenchWay, only 58% of techs feel they’re paid fairly. Meanwhile, satisfaction with benefits is hitting near 50%.

So, dealers are switching things up. Think clear training. Real support. And a visible path forward.

Read all about it in this week’s Market Pulse.

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Welcome to The Breakdown, an analysis of auto retail’s top trends, moves, and insights in under 5 minutes.

It’s been fascinating watching some automakers try to mend fences with their U.S. dealer networks (looking at you, Stellantis and Nissan).

But on the other end of the spectrum, there is one brand actually winning dealer confidence in a big way: Mercedes-Benz

And some operators are going out of their way to tell me how energized they are about what’s coming next.

Here are three reasons why they should be…

Mercedes-Benz is gearing up for its biggest U.S. product blitz in decades.

Once the king of America’s luxury car market, Mercedes-Benz is now working to reclaim lost ground. Lately, the brand has been trailing BMW, and Lexus, sitting in third place (or fourth if we included Tesla) and industry forecasts say that trend will continue.

2025 market share estimates (full numbers aren’t available quite yet):

Tesla: ~3.5
Lexus: ~2.6%
BMW: ~2.5%
Mercedes-Benz: ~2.1%

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"The last few years really have been challenging. I mean, they went through a very difficult time during COVID trying to manage the supply chain. Much more difficult, I think, than some of our luxury competitors," said Joseph Agresta, Jr., president of Benzel-Busch Motor Car and outgoing Mercedes-Benz Dealer Board Chairman.

Joseph Agresta, Jr.
Benzel-Busch Motor

As a result, MB dealers gave up some market share due to not having access to some of that product, which caused prices to jump. And once prices go up, it's hard to bring them back down.

On top of that, MB's transition to electrification, (like almost all manufacturers), has not been a smooth one.

The good news: MBUSA CEO Adam Chamberlain has pledged to return annual U.S. sales to 400,000 units by 2030, a meaningful increase from the roughly 335,000 units sold today.

To get there, the automaker plans to expand its V8 portfolio for the U.S., upgrade several smaller models, roll out more “affordable” options, and lean into the powertrain mix that resonates most with American buyers, namely hybrids and internal-combustion engines.

The signal: More than product positioning, dealers are hearing that Mercedes will begin repackaging vehicles into more traditional trim levels to simplify the lineup and improve dealership profitability.

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Mercedes-Benz dealerships are becoming more valuable and desirable.

George Karolis, president of the Presidio Group (a dealership M&A firm) told me that Mercedes-Benz’s iconic luxury nameplate, durable earnings power for dealers, and deep customer base, are grabbing buyers’ attention despite the sales decline.

And the brand’s blue sky is moving into true top‑shelf territory, with stores now commanding mid‑9x earnings and the factory–dealer story aligning behind that pricing.

What’s more: In Presidio’s brand desirability survey with NCM, Mercedes also made the “most sought-after” list at number 6 on the back of stable leadership under Chamberlain, strong long-term earnings prospects, and a brand that still carries real weight with luxury consumers.

And that combination is creating a classic seller’s market.

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“We've seen some [Mercedes stores] transact and they've been very well received and really are in high demand. I expect to see that continue. I don't want to use the phrase ‘flight to quality,’ but the right luxury brands, the mainline luxury brands of decent volume and in good markets are hard to come by,” Karolis explained.

George Karolis
The Presidio Group

The signal: Mercedes-Benz stores are scarce, high‑quality cash‑flow assets that dealers are willing to stretch for.

Mercedes-Benz has a tremendous number of units in operation.

In a market where wealthier households are still largely intact but consumers are levering up and hanging onto vehicles longer, that installed base becomes a predictable, high‑margin service income stream.

The logic is simple: When replacement cycles stretch, the real money shifts from front‑end grosses to keeping existing cars on the road.

Mercedes owners are conditioned to treat the dealership as the default service destination.
And the brand’s smaller network means each store has a wide catchment area for maintenance, repair, and warranty work.
That’s why, as Karolis put it, the long‑term value of the brand is tied to “what [dealers] can make with it” over time.

The signal: A large, loyal fleet of Mercedes owners coming back for service and repair turns the brand into a cash‑flow story first and a volume story second

The bottom line is that Mercedes-Benz is quietly building the kind of franchise story that matters in the next chapter of auto retail, and the dealer body is eager to lean in.

But the brand still has real work to do on EVs, incentives, and affordability. However, if Chamberlain and his team can execute on this product cycle while protecting dealer profitability and trust, Mercedes could end up as the blueprint for how a legacy luxury OEM navigates the next decade.