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Old 02-29-2008, 02:45 PM   #1
Join Date: Nov 2007
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Default Sonic Automotive reports Mercedes Benz Warranty Work is down 23%

During the Sonic Conference Call one of the analysts asked about Service and Parts Revenues and wanted to know whether warranty work had declined.

Like most Dealers and Dealer Groups, Sonic reported that warranty work continues to decline and they have numerous efforts to replace that work with retail service.

Included with their answer was the statement that the biggest reason for the overall decline was a 23% decline in Mercedes' warranty work. That's a pretty major decline. Given that Sonic has numerous Mercedes dealerships I would imagine that this echos a national trend?

For those that may have direct knowledge, is the drop in Mercedes Benz warranty work a reflection of increased quality, fewer vehicles that are under warranty (lower vehicle sales) or some other variable?
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