Mercedes-Benz just poached a top exec from Fortune 500 dealer group Lithia to run the brand’s U.S. sales operations

• Adam Chamberlain, the chief of operations for automotive retailer Lithia & Driveway, will take over as CEO of Mercedes-Benz USA from July. The German premium brand is in the process of reshuffling its leadership team in key markets following the recent appointment of new global sales boss Mathias Geisen.

Mercedes-Benz is poaching the chief of operations of Lithia & Driveway, one of the largest U.S. automotive retailers, to run its national sales company in America. 

Effective July 1, Adam Chamberlain takes over from Dimitris Psillakis, current CEO of Mercedes-Benz USA. He will lead MBUSA’s more than 1,600 employees and over 380 dealer partners throughout the United States, reporting to Jason Hoff, the new head of the group’s North American arm. 

The move comes as Mercedes’ global sales and marketing chief Mathias Geisen reshuffles management in his division after taking the reins in March from Britta Seeger, who became head of human resources after eight years running sales.

The German premium brand has fallen badly behind archival BMW of late. On a group level, they both sold 2.4 million vehicles last year, but the Mercedes brand only managed a little under 2 million without its van business compared to BMW brand's 2.2 million cars. Worse, Mercedes' all-electric vehicles have sold poorly, declining 23% to 185,059 vehicles in 2024, while BMW sold twice as many for a 12% increase.

“Adam is a proven executive with over 30 years of global automotive experience including the past nine years in the U.S.,” said Mercedes sales boss Geisen. “He brings an exceptional blend of strategic and operational excellence in both the manufacturer and retail businesses as well as a strong connection to our team, dealers and customers.”

Between 2016 and 2021, Chamberlain served at Mercedes-Benz USA as vice president of sales and product management, helping to lead the brand’s retail and product strategy in the U.S. market. 

MBUSA is responsible for the brand’s second-largest market after China, representing about 16% of overall annual volumes. Excluding its commercial transport vans, Mercedes sold over 324,500 passenger cars led by the GLE crossover built in Alabama.

'The beginning of a new chapter in our long-standing partnership with Mercedes-Benz'

“We are incredibly grateful for Adam’s leadership as our Chief Operating Officer and the value he brought to Lithia & Driveway,” said Bryan DeBoer, president and CEO of the company, in a statement on Tuesday. “His contributions have helped strengthen our operations, sharpen our offerings and customer awareness, drive growth and advance our strategy.”

DeBoer said Chamberlain could also remain a valuable ally going forward as the U.S. automotive retail landscape continues to shift. In the highly fragmented car-dealer market, Lithia & Driveways is one of the largest by showrooms and vehicles sold.

“This is the beginning of a new chapter in our long-standing partnership with Mercedes-Benz,” the Lithia boss said, “and Adam remains committed to our shared success.”

One major trend affecting dealers is that automakers are experimenting with direct sales. A number of other brands, mainly startups like Rivian, are looking to follow Tesla and end restrictions that legally bar them from bypassing dealers to sell new cars to consumers. 

While a structurally lower margin business, owning the customer relationship offers carmakers to mine retail data more easily and facilitates the sale of upgrades and sundry over services after the actual vehicle sale. It can also bind customers more closely to the brand and improve loyalty when done well. 

Mercedes has carefully explored this approach in select overseas markets, but not in the United States thus far.

This story was originally featured on Fortune.com