CalmSeasQuest

After months of searching, I thought I had finally found my next vehicle. I attempted to order a fully loaded Obsidian/Designo GL350 yesterday with a January build slot. This morning, I received a call form my dealer apologizing that they were unable to place the order, or any new orders for the 350GL as Mercedes has placed a freeze.

I was told it has to do with the number of US Bluetec GLs that are being sent overseas due to the cost advantage of purchasing in the US. No timeline was provided as to when orders might again be accepted.

I'm curious to see what others are being told - I guess I'm back to the drawing board.

JimBarnhart

Do you have a relationship with this dealer? Perhaps they profiled you as a potential exporter? You might want to call another dealer. Fabbris, our guy in the know says allocations are used up for this calendar year, but perhaps another dealer will have an allocation they can configure for you.

CalmSeasQuest

This is my first purchase through this dealer (cash deal.) They were trying to alter an existing allocation. I was told this impacted all dealers, regardless of the buyer.

The dealer stated they cannot place any new orders (perhaps having to do with all allocations used) nor can they alter any existing allocations. They also said it might impact orders already in system.

At this point, I may not know the full story other than I'm hoping it's resolved quickly so I can get this truck ordered before I lose the build slot. <fingers crossed>

LoseWeightAskMe

What? This is crazy. So they are not going to build anymore Bluetec's with the little chance that they might get exported? Doesn't make any sense. Whats stopping someone buying a GL450 and then export that?

CalmSeasQuest

I just spoke with another dealer - they put me through the wringer asking me to confirm I was not going to export it. He stated that a large percentage of the GL350s are finding there way to China and Russia. At this point, I'm not sure if it's an absolute hold or handled on a dealer-by-dealer basis.

Maybe it's the fact it's a cash deal - I should have financed it.

Germancar1

Yeah I would bet it being a cash purchase is the problem. This has been a problem with the diesel GL since day one.

M

JimBarnhart

Based upon your information, I suspect they have profiled you as a likely exporter. Sign up for the prepaid maintenance or an extended warranty, or offer to finance as a means to show you intend to keep it and see if their attitude changes.

MB is losing significant profit on each GL350 that is exported. LWAM, the GL450's are not as interesting to foreign markets - they want the diesel.

CalmSeasQuest

I asked for pricing on both prepaid maintenance (although I don't think it makes sense when I'll be topping off the AdBlue) and the extended warranty. I also mentioned I'd take the financing if there were incentive rates.

Very sad, I was really looking forward to this truck.

aas5

Aren't GLs only produced in Alabama and not anywhere else (similar to X6 and X5)?

djrabbi

I know MLs are Mexico or Brazil...GL probably the same

Ntuck

Yes, I'm sure it was because you told them you were paying cash. My dealer told me when he worked for another dealership that this guy would come in and purchase like 4 of these trucks within a month and buy them fully loaded. The sales guy was wondering what in the world after he bought his 2nd one...so the guy told him that he was exporting them. This was not MB, I don't know what car it was, but anyway, the customer was exporting them overseas and making a killing off of it! He was getting cash wired to him to pay for the vehicle and in the end made like $100,000 or something crazy.

I would definitely try and finance. You can always finance and then pay the whole thing off after you get your first statement. I chose the financing through MB and was able to get 1.94% which was better than anyone else I found.

My SA had me sign a waiver that I was not going to export my 350 and probably told me 5 times in the process of the whole ordering etc that I was not allowed to export.

aas5

What is a big deal with exporting? Aren't they all competing to sell the most cars? Just trying to understand the logic from the MB point of view.

UAG1

a lot more other costs Mercedes paid to sell/developed in those markets (fixed costs) and the sales there will be tanked since people can do parallel import there to buy from the US market because is 50% off compare to the authorized dealer prices.

fabbrisd1

Let me try to bring some clarity - "no" - existing dealer production orders are not on "hold".

By and large existing allocated production orders are thru November - and by and large nationwide those existing production orders have been sold out.

As of this point - I have not seen dealers getting "upside" additional production slots.

Frankly - a dealer who tells you this week that they will have a additional January production slot is "guessing" - since December and January production has not been allocated yet - they might "assume" they will get January allocated production order - they may or may not.

Yes - there is export scrutiny - 1st this is based on the customer being within their specific market area and confirmed by personal customer contact on site at the dealer - 2nd that that customer does not exist on a pre-identified high risk export list from MB - 3rd the colors/features on the GL - 4th financing arrangement, cash purchase yes being more highly suspect.

Actually, the "export" thing kind of wreaks havoc with brand building on the GL in China where the GL's retail for USD$140-$155K .

Factually, in October MB rules will change somewhat, the scrutiny will still be there, but overall across the following year based on a % of unit sales well documented/well scrutinized sales that end up anyway as export may be "excused" - meaning no dealer penalty for select few units over the course of the year.

On the bad side, the stories/backup on seemingly legitimate customers that are not legitimate but exporters - all has become much more sophisiticated - stronger stories, etc...

Keep the beat !

cookstar

The Gl in China is closer to $200,000.

aeggroup

GL in Russia cost about $150 depending on options, but it's not because MB makes more money there. I'm sure they charge more price than in US, but big difference in price comes from government taxes and fees, which have nothing to do with MB profit.

fabbrisd1

In China the GL550 is retail USD$190K .... GL350's are USD$140K-$150K since China import duty on diesel is "lower duty" repectively in % and total as compared to the GL550 for several China duty reasons

CalmSeasQuest

Maybe there's hope

I reached out to another local dealer who has told me they have an November slot that should arrive December or early January. We discussed the export concern and I agreed to provide whatever is requested to confirm this will be my personal vehicle and that it will not be exported anywhere.

I'm beginning to wonder if the problem was specific to that dealer. If all goes as planned I still might be able to take delivery toward the end of the year.

wamochi

my dealer told me that it's not just those offering to pay cash. people have been financing and leasing and then paying off a week later. so the dealers have "other" ways of profiling customers.

the dealers care because they get in trouble w/ MBUSA for illegal exports, and in addition to fines, they lose future allocations. so most dealers are exceedingly careful now.

JimBarnhart

Excellent news! I think you are correct, that dealer has an issue, could be they don't expect an allocation, could be they profiled you, but looks like you found a solution.

fabbrisd1

CSea's - yes, a 3rd decade November order at this moment is still changeable colors, options, and that dealer is being straightfoward that with shipping - and Holiday - that delivery could be 3rd week December or could slip from Holiday for 1st week January.

Reaching out is all to the good, but on-site meeting to confirm/sign specs and place deposit - get confirmed PO# - that's what needs to be done.

CalmSeasQuest

Thank you fabbrisd1,

After a month of researching and speaking with 3 different dealers, I can say some of the best data came from this forum - Thank you all.

I now believe the problem WAS specific to that dealer (perhaps too many of their VINS finding there way overseas) and they chose to lead me to believe it impacted all dealers.

I'm hoping this GL350 build slot works out. I have configured a ML350 as my backup, but prefer the GL as I think the ride is slightly improved and in the event the additional seats are needed.

Now comes the hard part, trying to negotiate something off of the $93,655 MSRP.

JimBarnhart

Must be a nice configuration to get to that MSRP. Let us know how you configured it, good luck in the negotiation, but don't expect much due to their short supply. Check into some of the fleet options (Costco, USAA, etc) if you are eligible.