Mercedes-Benz's First Retail Store changes hands
Mercedes-Benz has embarked on a restructuring plan aimed at making its sales network more resilient to future challenges. The plan, which was first announced in early 2024, involves the sale of company-owned car dealerships in Germany, with the sale of the Neu-Ulm dealership marking the beginning of this process [1].
The Neu-Ulm dealership, employing around 200 people, has been acquired by Sterne Gruppe GmbH, a company that already operates 15 Mercedes locations in southern Germany. Sterne Gruppe GmbH has presented a long-term strategy for the Neu-Ulm site, signifying a commitment to the new location [1].
Prospective buyers for Mercedes-Benz dealerships are required to demonstrate retail expertise, entrepreneurial competence, financial strength, a willingness to invest, and openness towards employee representation. Notably, pure financial investors are not considered for the sale [1].
The sale of dealerships is part of Mercedes-Benz's broader strategy to adapt its sales network to the changing automotive landscape. The transition has impacted approximately 8,000 employees across around 80 locations in Germany. Initially, the plan faced strong opposition from employees, with Ergun Lümali, head of the General Works Council, describing it as a "slap in the face" [1].
However, following employee protests, Mercedes-Benz reached an agreement with the General Works Council last summer on key points regarding potential business transfers to new owners. This progress indicates a move towards a more collaborative transition [1].
As the sale of dealerships continues, Mercedes-Benz is in talks with potential buyers for further locations. The company remains committed to ensuring that the new owners can maintain strong dealership operations that align with Mercedes-Benz's values and standards.
References: [1] "Mercedes-Benz to sell German dealerships to secure future-proof sales network," Mercedes-Benz Media Centre, 2024. [Online]. Available: https://media.mercedes-benz.com/marsmedia/en/article/2024/mercedes-benz-to-sell-german-dealerships-to-secure-future-proof-sales-network-1103405.html. [Accessed: 15-Mar-2024].
- The sale of Mercedes-Benz dealerships, such as the Neu-Ulm dealership, is part of a broader industry strategy to adapt the sales network in alignment with changing circumstances in the automotive business.
- Potential buyers for Mercedes-Benz dealerships, like Sterne Gruppe GmbH, must demonstrate expertise in retail, entrepreneurial competence, financial strength, a willingness to invest, and openness towards employee representation.
- The restructuring plan initially faced opposition from employees, but with collaborative negotiations, Mercedes-Benz has made progress towards a smoother transition within the finance, transportation, and automotive sectors.
