20 car dealerships, 8,000 employees
Mercedes wants to sell all branches in Germany
January 19, 2024, 4:10 p.m
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Mercedes almost no longer has its own branches in the USA and Asia, and the car manufacturer is also increasingly working with external partners in sales in Europe. Now it’s Germany’s turn. The group wants to sell all branches – even though they are profitable.
The car manufacturer Mercedes-Benz is examining the sale of its branches in Germany. The company said in response to a Reuters query that it concerns all self-owned car dealerships and workshops. The review is open-ended and step-by-step. Mercedes currently operates 20 branches in Germany with 80 affiliated companies and around 8,000 employees.
The Supervisory Board will address the issue this Friday; the employee side must agree to a sale. According to a report in the “Handelsblatt”, a fundamental agreement should be reached with the works councils by the summer. Since Mercedes says it excludes a sale to pure financial investors, the process is likely to take several years. Potential buyers should therefore have demonstrable expertise in the area of automobile sales, pursue long-term perspectives, be prepared to invest significant financial resources and be open to works councils and unions.
No job cuts planned
Mercedes said there are no plans to cut jobs or close branches. “There will be no layoffs in the event of a possible reorganization,” the “Handelsblatt” quoted from a statement from the group, which the editorial team said was available to them. All collective bargaining employees in the Mercedes branches are currently protected from operational dismissals until the end of 2029.
In the past three years, Mercedes had already sold all showrooms in Great Britain, Italy, Spain, Belgium and the Czech Republic. In Asia and the USA, Mercedes has also been working almost exclusively with external sales partners for a long time.
According to the “Handelsblatt”, Mercedes-owned branches operate profitably, but independent dealer groups are generally more efficient and flexible. They are often characterized by fewer hierarchical levels, can bundle sales functions more effectively and translate these into greater economies of scale compared to part of a large corporation.