Mercedes-Benz has reached an agency model agreement with its retailers which will lead to the new retail framework's introduction in the UK from 2023.

The German premium brand, which had been consulting UK retailers on the change this summer, announced this afternoon (December 17) that it had agreed key points of the process which would bring the model to the UK and its native Germany in 2023.

Terms were agreed with the European Association of Mercedes-Benz Dealers (FEAC, Fédération Européenne des Amicales de Concessionnaires Mercedes-Benz) for a franchise framework that is expected to see more than 50% of new Mercedes-Benz vehicles available in Europe sold under the agency model by the end of 2023.

Mercedes has already rolled-out its agency model with franchisees in Sweden, Austria, South Africa and India.

Britta Seeger, Mercedes-Benz and Daimler’s member of the board of management responsible for sales, said: “Our concern is that we achieve even stronger customer loyalty to our Mercedes-Benz brand worldwide. Therefore, I am all the more pleased that with this next step, together with the European Dealer Association, we have now reached an important milestone for us and our partners in Europe.