Mercedes-Benz reportedly pulls the plug on its subscription service after poor sales

Mercedes-Benz has been discontinuing a two-year subscription service after normal sales, Automotive News reported.

Mercedes-Benz USA Sales Manager Adam Chamberlain explained that this service is a learning experience that can be expanded if sales are better. Chamberlain said last week in demand for automobiles “If the demand was unbelievable, it could have been better.” Mercedes-Benz launched its collection car service in Atlanta in 2018. You don't necessarily want to own one. The program gave subscribers access to 30 models at monthly rates, including premiums, 24/7 roadside assistance and vehicle maintenance.

However, the collection has not expanded beyond the initial pilot cities of Philadelphia, Atlanta and Nashville. The service attracted hundreds of customers, and Mercedes executives expected to make money in the first 12 to 18 months Auto News A spokeswoman for Mercedes-Benz did not immediately ask for comment.

Mercedes 'Collection consisted of three tiers: signature for $1,095 per month, reservation for $1,595 per month, and Premiere for $2,995 per month. A one-time $495 subscription fee is also required. As of February 2020, Mercedes was trying to sell juice by adding a new tier consisting of high-performance AMG models from automakers.

But Mercedes does not walk empty-handed. According to Chamberlain Auto News automakers can collect “mountain data” for their subscribers, and in most cases they are 10 years younger than regular customers in automakers. This will enable us to more effectively target millennium-generation car buyers in future automakers.

Subscription is a mixed bag for the automotive industry. Ford shut down the service last fall due to low demand. Cadillac ended the service book in 2018.

Other automakers have had some success. BMW, Porsche, Audi, Volvo, Nissan and Jaguar still offer a wide range of services. Even large car rental companies Hertz and Enterprise are taking this action. Most of these subscriptions are only available in certain cities and are still in the trial phase.

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