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In addition to being the headquarters of Mercedes-Benz in the United States, the demographics of Atlanta and the growing number of wealthy professionals make the region a growing market for subscription services. Atlanta is also a pilot market for Porsche's subscription program.
"We expect Atlanta to be our biggest market," said Heiko Schmidt, CEO of Mercedes-Benz Subscription Services.
The Atlanta expansion suggests growing confidence in the viability of subscription programs. The new model is helping to attract new customers to the brand – only about 20% of subscribers previously owning Mercedes vehicles, Schmidt said. Subscribed customers are more than 10 years younger than typical Mercedes-Benz customers.
"We are addressing a certain type of customer that we could not otherwise achieve," said Schmidt.
The subscription program also generates sales. Some members use the program to test driving models for three or four months before buying a Mercedes from a dealership, said Dietmar Exler, who announced his resignation from the position of CEO of Mercedes-Benz USA on May 16.
Mercedes' membership program includes three levels – Signature, Reserve and Premier – with prices ranging from $ 1,095 to $ 2,995 per month. Subscribers pay a one-time activation fee of $ 495 and have the choice between SUVs, crossovers, sedans, coupes, convertibles, roadsters and wagons. Each level also allows access to the company's high-performance Mercedes-AMG models.
The program is a collaboration between MBUSA, Mercedes-Benz Financial Services USA and Mercedes-Benz dealers.
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