The company is looking to reduce fixed costs
Mercedes-Benz will be selling 25 service and dealership locations in Europe, primarily in Spain, Britain and Spain. According to Automotive News Europe, the automaker could make as much as EUR1 billion ($1.2 billion) by getting rid of these locations. This is according to a report by Germany’s Handelsblatt.
Mercedes plans to sell these locations to investors or independent dealers groups. Each one could be sold for EUR30 million to EUR40 millions. Mercedes wants to provide job security guarantees for those who work at these sites. About 2,800 people work in these showrooms and service centres.
“In potential discussions with interested buyers” a spokesperson for Mercedes-Benz told Automotive News Europe.
These locations can be sold to make quick cash for the automaker and lower the company’s fixed cost. The location’s upkeep is taken care of by the automaker, who also gets rid of the workers.
Mercedes can use the money for its large investment in electric vehicles. This is still in very early stages. The EQS luxury sedanwill be available in the US later this year. There’s more to come.
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Mercedes offers EVs such as the cross-over variant of the EQS and the smaller HTMLB. There is also the mid-sized, EQE sedan. There are many electric vehicles in the future. However, it is expensive to develop them.
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