Why Mercedes-Benz Plays Tough on Its Chinese Customer?

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Last updated at: (Beijing Time) Thursday, January 24, 2002

Why Mercedes-Benz Plays Tough on Its Chinese Customer?

Benz Company has lately by playing a tough hand on a Chinese customer brought no small stir in China��s car market and as has been reported this Chinese customer has angrily smashed his shoddy "Benz" because of the manufacturer's intransigence.

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Mercedes-Benz China has lately by playing a tough hand on a Chinese customer brought no small stir in China's car market and as has been reported this Chinese customer has angrily smashed his shoddy "Benz" because of the manufacturer's intransigence.

Of various quality disputes told by news media in modern days there has never been a car manufacturer like Benz Company being so intransigent and unyielding and even in an escalated angry mood in handling the quality problem of a car it had put out. To people's notice are three announcements made by the manufacturer cited as follows:

December 27, 2001, "We are very sorry the customer refused our help offered and for the most extreme unnecessary action he has taken".

January 8, 2002, "We must point out with regret over such a senseless behavior."

January 17, 2002, Benz simply requested "an open letter of apology by Wuhan Wildlife Zoo for their unnecessary action taken in harming the rights and interests of our company and that it must make sure every new medium has a copy of the letter for carrying related news coverage."

Where is the force of Benz Company showing no scruples in playing a tough hand?

First, Benz's old practice tells no Chinese customer has ever won out

A common sense is that an ordinary quality problem shouldn't have brought a big uproar both for Benz Company and other car manufacturers from the very outset. On December 26, 2001, before Benz was smashed, the car owner held a press conference at Wuhan and had meanwhile given Benz Company the message that if not solved he "is going to smash his Benz". Since things came to this pass the ways for different car manufacturers to deal with such a situation must be many a varied and vastly different. Personnel might be sent to patch things up as doing repair or sought on better terms to hush things up, this is as has been done by some Chinese manufacturers as well as those from the ROK. Japanese manufacturers may also not be excepted for no apologies will be spared and their repairmen may place themselves readily at the customers' service. Complemented with various procrastinated measures matters may remain essentially the same as they are, not to be practically or genuinely solved.

German manufacturers seem not to be included in the like categories listed above for their inborn rigidity and intransigence in work among various European car manufacturers to exclude any possible modifications or "policy shifts" set. Among the various quality disputes as we have got to know with Benz Company there is not a Chinese customer having come out the winner in China.

Second, Benz as a luxury car enjoys the biggest sale topping other world brands

In 2001, Benz commanded a sale of as many as over 5000 luxury cars in China and most of these are of the S-grade, leaving all the other brands far behind. The only exception is BMW to some extent as some threat it has posed to its market size. Why all the other manufacturers as those in China and those of ROK and Japan dare not challenge their customers over any quality disputes? Because of intensified worries over market sales of their cars that must not be affected. This is to say a quality dispute as over that smashed shoddy Benz can in no way disfigure the image of luxury Benz or affect its market. This is the bullish side to Benz Company.

Third, corporate strength finds no match in individuals short of legal protection

Essentially speaking, what is to blame is China lacks a complete set of laws ensuring car quality, orderly market sales and consumption. This has obviously put country's customers in a weak position in car consumption.

It is reported that concerned central departments are these days mulling over some specific laws or regulations to make sure legal basis be fully provided in the way customers are going to have their rights and interests adequately protected.

But how is the case of the shoddy Benz having been angrily smashed going to be brought to an end? Among the nays, let's make choose out of these alternatives:

One, Benz is to simply and explicitly rule out any quality problem by its product and will retain its right to make a countercharge against its customer. Naturally nothing will come out of half a year's effort by the customer and the Chinese owner will have to take his smashed car home from Beijing and will become unknown at long last. The chance is placed at around 60 percent.

Two, Benz is to strike an agreement with its customer after prolonged bargaining or haggling over their deal. A new Benz is to be provided on the sly instead in order that the cat will not be let out of its bad by news media. This may stand at 40 percent.

Three, Benz is to admit its quality problem and makes open apology. This seems to be windfall.

By People's Daily Online

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