The right choice for China market

Daimler tapped Nicholas Speeks, previously president and CEO of Mercedes-Benz Japan, to lead the new company.

In his career at Daimler spanning more than three decades, Speeks has risen to meet challenges in a variety of markets including the Middle East, Vietnam and most recently Japan, where he turned around the fortunes of Mercedes-Benz despite the triple-disaster earthquake, tsunami and nuclear meltdown that hit the country in 2011.

But the first few months in China were not immediately smooth for the British CEO tasked with implementing a thorough integration of two formerly independent organizations on an operational level while increasing sales at the same time.

And unexpectedly, communications with dealer partners were not sufficiently smooth at first, causing some to question Speeks' unique and illustrative style of communication.

But nine months have passed since BMBS officially started operation and Speeks has brought about significant changes through a strategy of enhanced consumer orientation and improved steering between Mercedes-Benz and its retail partners.

The brand added 75 new retail outlets, bringing its total to 337 covering 151 cities in China.

The willingness of Mercedes-Benz's retail partners to introduce the brand's products into third and fourth-tier cities and the long list of applicants waiting to become Mercedes-Benz dealers speaks volumes about the confidence they have in brand and Speeks' ability to steer it to continued growth in China.

"Speeks' passion has inspired and motivated us as a team for one common goal," said Micheal Lee, CEO of Zung Fu Co, one of the biggest dealer groups for Mercedes-Benz in China. "It is critical that Mercedes-Benz and dealers continue to support each other and have mutual trust going forward."

Zhu Lingjun, president of Boshi Group, noted that Speeks is an ardent observer of history who makes frequent references to historical figures and events in his communications.

"Speeks' respect and understanding of Chinese culture and the use of his knowledge of world history for communication with Chinese dealers works perfectly," said Zhu.

The changes by Daimler this year in China have begun to produce positive results. BMBS has seen sales grow every single month since its establishment, with 26 percent growth in November standing out in particular following 16 percent growth from March to November.

While introducing several new models at the Guangzhou auto show, Speeks told reporters that "the foundation for Mercedes-Benz's future in China was laid down in 2013".

lifangfang@chinadaily.com.cn