Mercedes-Benz Group AG is considering the sale of its remaining German retail network of 20 branches provided that its supervisory board can hammer out an agreement with the 8,000 employees covered by a collective bargaining agreement.
Mercedes-Benz Group AG told Handelsblatt there are no plans to cut jobs or close branches.
Under the current collective bargaining agreement, all of the employees in the Mercedes-Benz Group AG retail branches are protected from operational dismissals until the end of 2029.
Mercedes-Benz Group AG began divesting its retail operation in 2015, selling branches in seven East German cities to Stern Auto in 2015 which is part of the LSH Auto Group based in Hong Kong.
LSH Auto acquired Mercedes-Benz Sydney in June 2015, Mercedes-Benz Brisbane in September 2015, Mercedes-Benz Manchester and Mercedes-Benz Birmingham in 2016 and Mercedes-Benz Melbourne in July 2017.
According to Reuters and Handelsblatt report that further to, Mercedes-Benz Group AG has divested all of its showrooms in Great Britain, Italy, Spain, Belgium and the Czech Republic to independent retailers.
The manufacturer told Reuters that the review is open-ended and step-by-step and its supervisory board must reach an agreement with the employees for the sale, but a fundamental agreement could be hammered out by the European Summer.
The process is likely to take several years because Mercedes-Benz Group AG is ruling out a sale to pure financial investors.
It says potential buyers should have demonstrable expertise in the area of car sales, pursue long-term perspectives, be prepared to invest significant financial resources and be open to works councils and unions.
