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Mercedes-Benz Retail Group announces pre-tax loss of £20.9m in 2020

  • Mercedes-Benz Retail Group make pre-tax loss of £20.9m in 2020
  • Dealer group’s accounts show revenue fell by 31 per cent on 2019
  • Retail arm of German brand claimed £5.7m in furlough cash

Time 5 days ago

Mercedes-Benz Retail Group (MBRG) made an eye-watering pre-tax loss of £20.9m in 2020, the firm’s accounts have shown.

The dealer arm of German car manufacturer was hit hard by the pandemic, which significantly reduced its turnover.

Accounts published via Companies House show that the group made £706.07m in revenue in the year ending December 31, 2020.


That is a fall of over 31 per cent from the pre-pandemic 2019 when it generated £1.025bn in revenue.

Despite the reduced incomings, 2020’s loss is actually less than a year previously, when MBRG lost £72.53m before tax.

The accounts show that the group claimed £5.7m in furlough cash and paid £56.15m in salaries and wages to employees.

That is over £9m less than the £65,258,000 it shelled out in 2019.

Last year also saw the firm’s new passenger car volume deliveries fall by 45 per cent year-on-year.

The results have led to the group’s parent company – Daimler – to ‘refocus its strategy’ and ‘take action on structural costs’.

It is now planning to divest of MBRG in order to transform its own retail business for Mercedes cars and vans.

Despite the news, bosses at the dealer group are anticipating better results in 2021.

Last month they announced a new flagship dealership in West London.

In a statement included in the accounts, Tim Schoeler, chief financial officer at Mercedes-Benz Retail Group, said: ‘2020 was dominated by the Covid-19 pandemic – and like other industries the automotive industry, and indeed, MBRG were hit by challenging trading restrictions.

‘These included the temporary closure of all our sales and some of our aftersales operations for significant periods, due to lockdowns.

‘However, our newly launched online showroom played a significant role in supporting changes in customer purchasing habits during the lockdowns and indeed beyond.

‘Despite our robust Covid-19 practices, Covid-19 related illness, as well as self-isolation resulted in higher than normal employee absence.

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‘With the UK economy, effectively at a standstill both business and consumer confidence fell to an all time low.’

He added: ‘The directors, expect 2021 to be a strong year of recovery not only for MBRG but for the motor trade as a whole.

‘The easing of restrictions in the UK has boosted consumer confidence and allowed us to reopen our dealerships at full capacity, combined with the benefits of our online showroom, in supporting customers with online purchases.’

How did other dealer groups get on in 2020?

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.

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