Mercedes-Benz Forum banner

1 - 20 of 74 Posts

·
Registered
Joined
·
573 Posts
Discussion Starter #1
Since the beginning of October, spare parts export from the European Union has been banned by the DAIMLER AG Board of Management and there is no intention to lift this ban in the near future.

The effect of this ban means that parts are now much harder to source and lead times for sourcing the parts are much longer. So called "Gray Market" suppliers have been told to buy from the official channels within their own countries, or pound sand........your choice.

In our case, MBUSA does not fully support the G-Class, as manufactured from 1979 - 2001, so we in effect have no way of supporting our W460 and W463 customers around the world. The UNIMOG is not officially supported here in the States either, and we are left scratching our heads with this one as well.

DAIMLER AG, which was once a great company, is now turning its back yet again to the throngs of loyal customers that appreciate their unbeatable off-road products. My inquiries to management officials within the G-Class department in Stuttgart have gone unanswered. One official within the UNIMOG department did confirm the ban is in place and that there are no future plans to lift the ban. We do not know, nor have we been given, the official reason for the export ban, but one can easily read between the lines.

We do not plan on changing our operation or our inventory with regard to spare parts. As stated above, lead times will be longer and of course, higher prices on OE - Original Equipment Mercedes parts will be forthcoming. We'll also look even more to the OEM - Original Equipment Manufacturers to supply us with identical parts at lower prices.

Please be patient with us as we work to adapt to this new reality. Your understanding is greatly appreciated!

Thank you,

-Sean Philyaw
 

·
Registered
U1600AG + a LR 90
Joined
·
995 Posts
If Freightliner/Detroit Diesel/MB cars USA stamp there feet Daimler are going to listen over and above small fry (no disrespect) like ET who aren’t Merc agents in the true sense of the word.

That said ET could get around it by setting up a European division if only in name only to act as an intermediary but it would have to be set up in a way that even though EU based VAT would have to be handled carefully so parts are bought for the express purpose of export or non end user so purchases were exempted from VAT and selling them forward to ET USA would also be free of VAT in the EU.
 

·
Registered
'76 1300L,HE351CW,H15P Winches,Konis,Hydraulics,All Gears,10mm Plungers,Aftercooler,Lots of Littles
Joined
·
2,674 Posts
Can someone explain how/why this makes any sense?

C.
 

·
Registered
1991 1250L Doka Unimog, 2002 ML320
Joined
·
1,199 Posts
Hey Sean........I tried to read between the lines and only see white blank space. What gives to those of bad eyesight?
Thanks,
Chas
 

·
Registered
U1600AG + a LR 90
Joined
·
995 Posts
Can someone explain how/why this makes any sense?

C.
Hey Sean........I tried to read between the lines and only see white blank space. What gives to those of bad eyesight?
Thanks,
Chas
Freightliner/Detroit Diesel/MB cars USA want you to buy your MB parts from them rather than ET or EI etc, etc and to stop them importing parts from the EU, if ET or EI buy MB parts in the EU and ship them over the MB agents in the EU will have to stop doing that and ET/EI cannot pass on MB warrantees via there MB agents in the EU so ET or EI would have to stand warrantees out of there own pockets unless they dealt with Freightliner/Detroit Diesel/MB cars USA directly for there parts stock.

In other words if you have bought mogs from MB agents in the EU it will be no problem for you to continue getting MB parts from them as you have history and are an end user though it may be difficult to start up a new relationship with a MB agent in the EU!

The problem is aimed at the likes of ET/EI and all the others in curtailing there activates in favour of Freightliner/Detroit Diesel/MB cars USA.
 

·
Registered
'78 Mog 416.141 DoKa
Joined
·
3,417 Posts
Freightliner/Detroit Diesel/MB cars USA want you to buy your MB parts from them rather than ET or EI etc, etc and to stop them importing parts from the EU
The problem is aimed at the likes of ET/EI and all the others in curtailing there activates in favour of Freightliner/Detroit Diesel/MB cars USA.
In the USA, this argument breaks down when it come to Mogs, older G's and pre-1980's cars. Current MB dealers have not and never had a clue when it comes to parts for these vehicles. I've tried for fun - both with the Mog and my '71 SL. You get blank stares.

Freightliner never supported pre-UGN Mogs - Jack Russell's outfit did it.

So, what DB is actually doing is extending the middle finger in the direction of everyone in the US with one of these vehicles.
 

·
Registered
U1600AG + a LR 90
Joined
·
995 Posts
I don’t doubt that for one moment that Current MB/Freightliner dealers in the USA are clueless in the main to older vehicles with respect to advice etc, but they must know there way around an EPC (though I can fully see there will be a lack of educated guessing that you need even with an EPC unless its your own vehicle or you know what questions to ask the owner)
 

·
Registered
'91 U1250 '02 U500NA
Joined
·
3,436 Posts
In the USA, this argument breaks down when it come to Mogs, older G's and pre-1980's cars. Current MB dealers have not and never had a clue when it comes to parts for these vehicles. I've tried for fun - both with the Mog and my '71 SL. You get blank stares.

Freightliner never supported pre-UGN Mogs - Jack Russell's outfit did it.

So, what DB is actually doing is extending the middle finger in the direction of everyone in the US with one of these vehicles.
I tried Western Star, with some success.
Some it means, they have the access to EPC and they can get the part.
Now the price and time frame, that's completely different story.
Example:
kit of brake pads - almost 3x$, as from Eurotruck,
ETA 2-3 months.

But that's again Grande Prairie - middle of nowhere...
 

·
Registered
1983 U1300L37
Joined
·
160 Posts
Land Rover have recently done the same. The idea was to protect their proper dealers from the 3rd party sellers. The problem is that the dealer is not allowed to sell you parts for any vehicle that wasn't originally sold in North America. So, if you have a '93 110, no problem. Ask for a part for an '84 110, forget it. I guess the same deal will hold for U500's. Since they were sold by MB here, they'll have to provide spares. Other Mogs are far more grey. I know of a municipality that recently bought a brand new U5000 DoKa rail rider to service their light rail system, what do they do?

I'm off to Germany next week and will see a friend that works in the MB truck group, I'll have to see what insight he can provide.
 

·
Registered
Unimogs
Joined
·
874 Posts
Purely conjecture on my part.....

Emerging market MB dealers were being hugely undercut by private companies competing with them using MB packaged parts. MB's future is being built on the emerging markets. When a local emerging market MB dealer is competing against private companies who are supplying MB parts in the same market, they are getting a little ticked.....especially when the prices that the private companies are paying for the parts might be less than they as an MB dealer are paying for the parts.

Let their be no question, this policy had nothing to do with the Unimogs, it was driven from the car side of the house, unfortunately it puts the North American Unimog market in a lousy situation.

I'm currently out at SEMA/AAPEX, and this has been a topic of discussion with a number of Euro parts exporters. We are not talking about small numbers here.........One MB dealer had ordered in 300,000 Euro of MB parts for an export order, with 24 hours notice MB told him to he couldn't export them and if he did he could lose his dealership. The largest Euro parts wholesaler in the United States was shut off by their dealer in Austria....It's a 100 million Euro a year account. That same MB dealer in Austria (Over 50 years as an MB dealer) does 300-450 million Euro a year in parts exports. They have pretty much been shut down by this.....

It will be interesting to see what hapens as this unfolds and the implications become clearer. Our 7 day turn times turned into 14-21 day turn times with zero notice, and the pricing has definitely increased. I think one of the un-inteded consequences will be to drive companies away from the MB brand and towards the OEM's as mentioned by Sean.

We shall see what the future holds.

Cheers,

Scott Ingham
Expedition Imports
 

·
Registered
95 s6 avant, 95 s6 sedan 470awhp, 67 mini turbo.
Joined
·
48 Posts
anyone wonder if its a currency exchange issue?

Audi did this one of my good friends got a cease and desist letter from them for selling euro bumpers, exterior parts for various models.
 

·
Registered
U1600AG + a LR 90
Joined
·
995 Posts
I find it extremely hard to believe that someone was doing 100 million Euro a year in parts and using a dealer in Austria! :rolleyes:

If someone was doing 100 million Euro a year in parts they would be dealing with Daimler AG direct in Germany and certainly not lining the pockets of a dealer in Austria who would just be adding turnaround time, they would no doubt have there own person assigned to them at Daimler AG HQ on a full time basis to cater for there every whim and they would most likely be on first name terms with some of the board of directors and getting free invites to advents around the world!

If you look on the Daimler AG corporate website under trucks and cars and look at all the much smaller “bulk” orders listed often for less then 5 million Euro of vehicles.

Perhaps the Daimler AG Board of Management want to stop dealers doing ludicrous exports and want the big purchasers to deal with Daimler AG direct much like every other person who dose big orders rather than not being passed up the line like there supposed to simply because every other car and truck manufactures looks after big customers as only they can offer the best deals or can price production line time for x days, x weeks, x months, after all a dealer is just someone with a franchise which can be terminated and is 1 up from the man on the street and many steps down from the HQ in Germany!

Anyway it would be interesting to see how the dictum from the board of management is worded and if it says North America or just the USA and what countries in the EU are listed as being forbidden from exporting parts. ;)
 

·
Registered
Unimogs
Joined
·
874 Posts
Not actually that difficult to understand.

"Excuse me Mercedes, I am a U.S. Based wholesaler that specializes in cutting your U.S. dealers out of supplying spare parts to independent repair shops. I am one of the largest wholesalers in the United States and prefer to go to your OEM's, however there are some parts that I HAVE to get from MB. Where do I sign up to become a direct competitor to your dealers!" Do you really think corporate is going to give them the time of day? Put WorldPac in your pipe and smoke it.... :)

The edict is worldwide. Has nothing to do with North America/United States. Dealers within the EU are forbidden from selling parts outside of the EU. They are forbidden to supply parts to companies in the EU that they think will export the parts out of the EU. Having prior relationships doesn't mean jack.

I realize you are contrarian and prefer to hide behind your anonymity, however a number of your assumptions within this thread are way off-base. I assure you the dealers/suppliers that make their livings with these spares are not just spouting off.

Cheers,

Scott Ingham
Expedition Imports
 

·
Registered
U1600AG + a LR 90
Joined
·
995 Posts
You know I do have a clue as to the internal import export within the EU and how tax works or and how it passes down the line and or exemptions or the claiming it back, and how exports to outside the EU from within the EU are VAT free or how fair competition laws work in the EU and the big fines for anti competitive practices by one EU company on other EU companies or groups of people, I do remember the tactics of your government and your car/truck makers that resulted in Daimler & AB Volvo taking over swaths of your industry just to get around the imposed import restrictions etc, or how large companies in the USA set up divisions of them selves over in the EU to simplify things from being exports to simple stock movements within a companies bonded warehousing, there are laws in the UK that override EU laws with regards to trade with commonwealth countries and crown dependencies across the world which may make any doctrine by Daimler AG in Germany a little harder under UK law just as in other sovereign states there will be laws that make some practices hard to impose if not down right unlawful.

I am sure WorldPac know who there competitors are and I am sure Mr or Mrs WorldPac could contact them with regard to Daimler AG’s decision and get together there buying power and to issue an ultimatum to MBUSA to play ball on realistic parts prices from them or face them setting up EU wings of there companies so EU law comes into play which would also allow closer ties with all the EU based OEM’s of all makes of vehicles along with all the trading perks that would bring with easer movement of stock via bonded warehousing etc given the company purchasing them would be EU resident with an EU address and EU VAT number using the EU bonding system!

Just remember you are looking at this as a USA based company trying to buy from EU MB vendors, I am looking at this as a USA company with a legitimate trading arm registered in an EU country as a subsidiary who buys from other EU based MB vendors, when they buy the parts they are bought with the express purpose of being delivered to a EU bonded warehouse thus keeping them out of free circulation and thus nil duty just like any other international company.

The real sticky mater would be the transfer of parts warranty as MBUSA are not going to stand parts warranty on grey import MB parts so would have to be returned to the EU and handled there with the less said the better.

Of course it would be highly illegal for Daimler AG to say that I can only by parts from UK vendors rather than excises my right to buy from any EU MB vendor under the free common market or to exercise my right to either pay VAT at the point of purchase or defer it and use the bonding system to pay VAT hear on import or to keep in in bond wile hear until I need it or it is waved on export out of the EU - given this how do you suppose the original vendor would know?

As for my assertion that customers who purchased a vehicle from an EU dealer would probably be ok to continue using the same company for parts supply as they are the vehicles direct end user with history of its EU purchase and I still stand by that comment, though it should not be confused with history you have with buying parts or vehicles from EU dealer when your NOT the end user but the middle man.

By “contrarian” do you mean just “somebody disposed to taking opposite position: somebody who is prone to opposing policies, opinions, or accepted wisdom” or a “maverick investor: an investor who goes against current market trends, for example by buying shares that most other investors are selling” :thumbsup:
 

·
Registered
85' U1300L Holset Turbo VA A/C, 66' Propane 404.1 rock mog, 1975 416 Doka, G500, Volvo C303
Joined
·
5,035 Posts
Holy run on sentence BATMAN!!!!!!!!!!!
 

·
Registered
1976 416.141
Joined
·
353 Posts
Scott/Jim/Sean
Just so I understand........
If I needed a OEM part from you guys that is not in your stock you could get it from from your normal distribution system. Correct?

If I wanted to order a MB part from you guys that is not in your stock you could not get it from your normal distribution system. Correct?

Question
If I wanted to order a MB part from you guys that is not in your stock could you or I order it from a MB dealer in the USA if we have the part number?

Thanks for any clarifications
Rick
 

·
Registered
Unimogs
Joined
·
874 Posts
I won't speak for the others, but as to your questions:

OEM parts distribution is not affected as those parts are not sourced through the MB network.

MB parts are effected. The effect for EI will be longer lead times, and a higher price. We have put into place "workarounds" but they are not nearly as convenient as the old distribution.

MB North Americas "official" stance out of New Jersey is that they DO NOT SUPPORT GRAY MARKET UNIMOGS.

Cheers,

Scott Ingham
Expedition Imports



Scott/Jim/Sean
Just so I understand........
If I needed a OEM part from you guys that is not in your stock you could get it from from your normal distribution system. Correct?

If I wanted to order a MB part from you guys that is not in your stock you could not get it from your normal distribution system. Correct?

Question
If I wanted to order a MB part from you guys that is not in your stock could you or I order it from a MB dealer in the USA if we have the part number?

Thanks for any clarifications
Rick
 

·
Registered
1976 416.141
Joined
·
353 Posts
Scott, thanks for the clarifications. Regarding gray market mogs......does MB USA consider the Case Mogs gray market?
Rick
 

·
Registered
'76 1300L,HE351CW,H15P Winches,Konis,Hydraulics,All Gears,10mm Plungers,Aftercooler,Lots of Littles
Joined
·
2,674 Posts
What about support for the Schmidt MBUs/SBUs that came in as plows/snow cutters? Since these were purchased by the government, I do not see how they can be grey market? Access to these model's parts would fix most SBU/MBU parts access issues I would think.

C.
 
1 - 20 of 74 Posts
Top