LSH Auto UK has appointed LSH Australia general manager Vaughan Blackman as its new managing director in preparation for Mercedes-Benz’s introduction of agency model car retail in 2023.

In a statement issued to AM this morning (December 20) Ruediger Schrage, the Hong Kong-owned group’s head of regional management, revealed that exiting managing director Martyn Webb had “decided to pursue other opportunities outside of LSH Auto and will leave the business”.

Schrage said: “Vaughan Blackman, General Manager of LSH Australia will take over from Martyn.

“Vaughan brings extensive experience from within the automotive industry and successfully implemented the Agency model with LSH Australia in 2021.”

Schrage added: “We are highly appreciative of Martyn’s support and would like to thank him for his commitment and wish him good luck with his future endeavours.”

Webb had held car retail positions at Holden Group, Sytner Group and Mercedes-Benz Retail Group before becoming part of the LSH Auto UK operation when it entered the UK in 2016.

He was made managing director in 2018 and oversaw the creation of the group’s sprawling Stockport dealership site, where he was interviewed for an AM dealer profile feature in 2019.

His sudden departure from the group comes months ahead of sweeping changes within Mercedes-Benz’s car retail network.

AM100 car retailer LSH Auto UK currently operates six Mercedes franchised sites, three Mercedes-Benz Vans locations and three smart dealerships across the midlands.

It is 12 months since Mercedes-Benz reached an agency model agreement with its European retailers which will lead to the introduction of an agency model retail structure in the UK from 2023.

Alongside the plan for the new distribution model, the German premium brand has revealed a plan to axe up to 20% of its German franchised dealerships and 10% of its global network by 2025.

Included in strategic announcements made in a Capital Markets Day announcement earlier this year was news that it aims to transact 80% of European car sales via an agency model and 25% online within three years.

Back in August Australian broadcaster ABC reported that 38 of 55 Mercedes-Benz dealerships in the country had united to fight the move to an agency model.

The group are demanding 650m Australian dollars (£373m) in the test case in which dealers allege they were forced to sign new agency model deals that would dramatically reduce their profits and wipe out years of goodwill with customers.