This news will probably come as a shock to around 8,000 people: Mercedes-Benz is considering selling all of its around 80 company-owned car dealerships in Germany. After several media outlets reported on the plans, the automaker confirmed the plans on Friday. After good experiences in various European markets, the company said it is now also examining how the group’s own branches can be made more independent. Sales to experienced and renowned dealer groups cannot be ruled out. Corporate circles say that the plans for the sale are already very firm. The question remains how long it takes to find suitable interested parties – and to get the works council on board.
The Group’s own Mercedes-Benz branches currently employ around 8,000 people in around 80 companies. It wouldn’t be the first wave of sales: in 2014 and 2015, the then Daimler Group had 63 independent branches Dealer sold. In 2021, more than 25 companies in England, Spain and Belgium were affected – with a positive effect for the car dealerships, as the manufacturer emphasizes: “All companies are still online, customers are provided with excellent support and the workforce has contractually agreed job security even after the transfer of the company. “
A sale of the branches does not mean that Mercedes vehicles will no longer be offered in the companies in the future. However, in many cases it is likely that existing dealer groups will take over the companies along with the Mercedes staff and then offer not only cars with the star, but also vehicles from other manufacturers.
The biggest hurdle: An employment guarantee applies to all employees
A Mercedes right next to a competitor’s car, for example from the Chinese manufacturer BYD? Not excluded. However, it will probably take quite a while until all German branches have found new owners.
On the one hand, the car manufacturer emphasizes that every sale is examined in an open-ended, step-by-step manner and for each branch individually. The only possible investor is someone who can demonstrate all the requirements for the best possible operation of a car dealership. In addition to proven experience, a long-term entrepreneurial concept as well as a long-term willingness to invest and an openness to employee representatives are important. Furthermore, the locations should not be handed over in their entirety to a buyer. “We are not planning to sell to pure financial investors, and the closure of locations is not part of the review,” Stuttgart continued.
The biggest hurdle is likely to be that the approximately 8,000 employees in the car dealerships are covered by the Swabians’ employment guarantee, which applies to all collective bargaining employees until the end of 2029. That’s why nothing can happen in the event of a possible sale without the consent of the works council.
Mercedes is already emphasizing that there will be no layoffs in the event of a possible realignment. Rather, the aim is to secure the future viability of jobs and the competitiveness of the branches in the long term. But of course it is also an emotional question that arises for many employees who now proudly say that they are employed directly by Mercedes and benefit from the structures of a large company – including strong employee representation.
The general works council promptly criticized the management’s plans as a “slap in the face” to the employees. “After years of sacrifice and the associated numerous concessions on the part of the employees, the branches are profitable and are making their contribution to the group result,” said works council leader Ergun Lümali. The plans are neither acceptable nor understandable. Especially in times of transformation, employees need support, consistency and confidence. “We will do everything we can to ensure that employees receive long-term guarantees,” he said. If this does not fall on fertile ground in discussions with the company, resistance will be offered.