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DC gets selective while Suzuki stays exclusive

DaimlerChrysler UK has signed new contracts for sales and servicing with Mercedes-Benz, Chrysler, Jeep and Smart retailers focusing on the selective distribution system. But Suzuki surprised analysts by announcing plans to go down the exclusive route, in contrast to most of its rivals.

The DCUK contracts will come into effect in October 2003 and are the same across Europe. The company says the paperwork lays out guidelines and standards within its preferred selective distribution system, which means it has to supply any dealer that meets its quality standards, irrespective of territory overlap.

For retailers, it means they are free to open multi-marque showrooms and sell to end users but not independent resellers. Meanwhile Suzuki's approach means that only one retailer will be appointed to each sales territory, but they will be able to sell to supermarkets, internet retailers and outside the area.

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