April 26, 2024

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[THE INVESTOR] Following a record-breaking year, Mercedes-Benz Korea vowed to sell more than 60,000 cars here in 2017, up from last year’s target of 50,000. 

“I think we can hit the 60,000 target,” Mercedes-Benz Korea CEO and president Dimitris Psillakis told reporters at a press conference held in Seoul on Jan. 16.

The German luxury automaker, however, is well aware of the difficult economic and political situation at home and abroad. “The year 2017 is complicated, because economic growth is slowing and it is not growing fast in comparison to the past,” Psillakis said. “We are facing a political turmoil in Korea in the first half of 2017 as well. But we promise to grow. ... We have plans to grow.”

 

Mercedes-Benz Korea CEO and President Dimitris Psillakis speaks during a press conference held at Yeong Bin Hall of Shilla Hotel in central Seoul on Jan. 16. Mercedes-Benz Korea

Despite unfavorable circumstances, the chief expressed confidence in achieving the sales target, citing last year’s success, introduction of six new models this year, expanding dealership network and launching a new digital service platform, as well as partnership with KT for connected cars. 

Last year, Mercedes-Benz sold 56,343 units in Korea, up 19.9 percent from a year earlier. The automaker surpassed the 50,000 annual sales number for the first time for a non-Korean brand. Thanks to the popularity of the new E-class models, Mercedes-Benz Korea became the No. 1 seller among imported brands here for the first time since its Korean entry in 2003, beating its German rival BMW. 

This year Mercedes-Benz Korea plans to roll out six new cars, beginning with the New GLC Coupe in March, premium SUV GLA and the new Mercedes-AMG E 63 4MATIC. Psillakis also said it will offer a plug-in hybrid model variant to tap into the growing green car market here.

Psillakis said the automaker plans to invest about 200 billion won (US$169.24 million) this year, mainly focusing on expanding the dealership network. It plans to open eight more showrooms to have 50 across the country, while add seven new service centers to reach a total of 55. It also plans to double the certified used-car showrooms from 11 to 20 by end of this year. Through a dealership expansion, the automaker expects to add 1,000 new jobs in Korea. 

At the press conference, Mercedes-Benz Korea also announced a partnership with local telecom giant KT for connected car technology. But the automaker didn’t elaborate further. 

Earlier this month, the automaker announced the price of all Mercedes-Benz cars will increase by an average of 0.8 percent -- from a minimum of a 0.4 percent increase to a maximum increase of 1.2 percent -- beginning on Feb. 1. 

Psillakis said the decision was inevitable due to the rising costs of logistics, raw material prices, inflation, labor as well as other factors. He also added that the StarView, a black box sourced in Korea, has added to the increasing price tag. The premium black box will be equipped in all new Mercedes-Benz cars -- ranging from A-class to E-class models -- from February.

By Ahn Sung-mi (sahn@heraldcorp.com)