Mercedes-Benz Affiliate First to Change Hands
Mercedes-Benz has embarked on a significant restructuring of its dealership network in Germany, starting with the sale of its company-owned dealership in Neu-Ulm to Sterne Group GmbH. The move is part of a broader strategy to future-proof the automaker's sales operations.
The Neu-Ulm dealership, which employs around 200 people, is the first deal sealed in the sale process. Sterne Group GmbH, a company already operating 15 Mercedes locations in southern Germany, has been awarded the bid and has a long-term concept for this site.
The sale is one of many as Mercedes-Benz aims to make its retail network more adaptable to future market conditions. An internal review concluded that divesting company-owned dealerships would be beneficial. Prospective buyers must demonstrate retail expertise, entrepreneurial competence, financial strength, investment willingness, and openness to employee representation. The company explicitly excluded pure financial investors from consideration to ensure stable and committed ownership.
The restructuring impacts around 8,000 employees across roughly 80 locations in Germany. Initial protests from employee representatives, led by the General Works Council's head, Ergun Lümali, who criticized the move as a "slap in the face," may have influenced the agreement reached last summer between Mercedes-Benz and the General Works Council on key points for possible takeovers.
While the passenger car dealership network is being downsized through sales, Mercedes-Benz’s commercial vehicle division is expanding its company-owned (Own Retail) sales and service locations in Germany, as exemplified by a modern facility in Haan with around 70 employees and a new location under construction in Stuttgart.
The sale and restructuring of Mercedes-Benz’s company-owned dealerships in Germany represent a strategic shift to make its retail network more sustainable and future-ready, with careful attention to buyer qualifications and labor relations. Mercedes-Benz is currently in discussions with potential buyers for further car dealership locations.
Sterne Group GmbH, with existing operations in 15 Mercedes locations, has shown retail expertise and entrepreneurial competence to acquire the Neu-Ulm dealership, a move that aligns with Mercedes-Benz's broader finances-driven strategy in the automotive industry. The restructuring in the passenger car dealership network is just one aspect of the comprehensive strategy, as the company also looks to expand its company-owned sales and service locations for the commercial vehicle division.
The financial strength and investment willingness of prospective buyers are crucial factors considered by Mercedes-Benz, ensuring that they can adapt to future market conditions in the transportation industry. The company has also emphasized the importance of openness to employee representation, a key point in the agreement reached last summer with the General Works Council.
As Mercedes-Benz moves forward with discussions with potential buyers for additional car dealership locations, their goal is to establish a retail network that remains sustainable and future-ready in the ever-evolving automotive business landscape.
