Zhongsheng Group Buys 70 Per Cent Stake in Carlsson
In the recent past luxury auto dealers in China have resorted to giving out massive discounts on each of their sales. It wasn’t so long ago that dealers in China enjoyed record margins on their sales and now one dealer group has come up with an interesting solution to sell more cars. The idea is to buy a majority stake in a famous German tuner and use its services to help differentiate the vehicles on the showroom floor.
Zhongsheng Group has bought a 70 percent stake in German tuner Carlsson Autotechnik for an undisclosed sum and plans to build a new retail chain for the sale of highly modified luxury cars. Carlsson is a specialist in the modification of German luxury cars. The company also intends to manufacture Carlsson parts for some of the other brands it sells to keep up with the expected demand.
An over-the-top C25 Royale, based on a previous-generation Mercedes-Benz SL65 AMG, is just one example of the many customized vehicles it has developed. Zhongsheng will be seeking factory-approval from automakers for all of the modifications so that the warranties can be maintained. The dealer group has 140 retail stores representing brands such as Mercedes-Benz, Lexus, Volvo, Porsche, Toyota and Nissan. Last year Zhongsheng sold $50 million worth of accessories through its dealer network and with the acquisition of the controlling stake in Carlsson the auto dealer is expected to do even better in the future.