Whether German car manufacturer Mercedes-Benz’s car sales in Vietnam will be narrowed due to the impact from German authority’s investigation on it and its constant recalls in this year’s first months.
23 years after being launched in Vietnam, Mercedes-Benz is one of the country’s favourite car brands. Despite difficulties, such as the market putting on hold cap purchases in 2017 to wait out more reasonable prices in 2018, reducing consumption in the segment by 10 per cent, Mercedes-Benz Vietnam (MBV) recorded total sales of 6,000 vehicles, up 40 per cent against 2016.
Even after the recent recalls throughout the country, MBV seems to be going strong with sales in the first three months exceeding 1,400 units.
However, after numerous rounds of recalls in Vietnam earlier this year as well as the German authority’s investigation, it remains to be seen whether MBV’s sales growth will continue in Vietnam.
German newswire Bold stated that, Daimler, the owner of Mercedes-Benz, is being investigated for using illegal software to manipulate diesel emissions. 40,000 Vito vehicles and 80,000 C-Class vehicles had to be recalled for investigation.
Newswire Reuters stated that the investigation has been going since 2017, after which the German authorities have multiple times called on Daimler to explain its violations.
This scandal had a marked impact on Mercedes-Benz’s business. Reuters also stated that Daimler’s shares fell 2.1 per cent to EUR70.98 at the beginning of the trading session on February 19.
Phapluatplus.vn stated that in MBV announced eight rounds of recalls this year. The latest recall was in early May, when MBV announced recalling 7,000 vehicles between May 14 to December 31, 2022 to handle electric system flaws.
While Mercedes-Benz has been going strong despite its recent difficulties, none of the previous issues had direct relevance to Vietnamese customers’ faith in the brand. However, the newest recalls all over the country as well as the investigation in Germany are new challenges and it remains to be seen how MBV will weather the storm.
Source: VIR
