Mercedes-Benz weighs showroom divestiture and regional restructuring

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Mercedes-Benz weighs selling its 80 German showrooms to separate dealer groups as part of a broader restructuring

Mercedes-Benz is evaluating the possibility of divesting its 80 German showrooms by handing them to different dealer groups to streamline the sales process. This move, described by the company’s press service through RIA News, signals a shift toward a more decentralized approach to retail operations in Germany.

The automaker is examining the lessons from more autonomous branch organizations across Europe and intends to pilot the setup of its own retail network. This comes as the company accelerates digitalization and advances in electromobility, seeking to adapt its sales and service model to a rapidly changing automotive landscape.

Should a sale proceed, each showroom would be matched with a suitable buyer. The only exception would be the transfer of the entire network to a single owner, or the closure or layoff of roughly 8,000 employees. This framework aims to preserve continuity for customers and employees while reconfiguring the retail footprint.

Mercedes-Benz Group AG, formerly known as Daimler AG, ranks among the world’s largest automobile manufacturers. In the first half of 2023, the group employed about 167,727 people, underscoring the scale of any strategic transition and its potential impact on the workforce and regional markets.

The company has also had a notable footprint beyond Europe, including a facility in the Moscow region. Plans there point to producing vehicles associated with a Chinese brand, reflecting the broader global supply and manufacturing ecosystem that Mercedes-Benz engages with as markets evolve.

The Esipovo site, opened in spring 2019 within the Moscow region’s industrial park, was designed to operate at a full-cycle production capacity of around 25,000 to 30,000 cars per year. This plant represents a strategic node in the company’s global production network and its response to regional demand and geopolitics.

Avtodom, a dealer holding company, became the owner of the Mercedes-Benz plant in Russia in April of the previous year. The transaction’s monetary terms were not disclosed, but the German automaker retains a future option to reacquire shares, illustrating a common corporate tactic to maintain strategic flexibility in asset ownership across jurisdictions.

In a separate incident, a Mercedes-Benz vehicle involved in a head-on collision in Moscow drew public attention, underscoring the real-world safety and traffic dynamics that accompany high-profile automotive brands in dense urban environments.

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