Daimler is looking to sell 25 dealerships across Europe that could generate up to €1 billion ($1.2 billion) for the German brand.
German newspaper Handelsblatt reports that Daimler is looking to offload various dealerships in the UK, Spain, and Belgium with approximately 2,800 employees. The paper adds that this is part of a move from Daimler chief executive Ola Kallenius to boost the company’s cash reserves and reduce fixed costs.
In an email with Auto News Europe, a Daimler spokesperson confirmed that the company is pondering the sales of various retail locations but said that any sales must ensure the job security of employees at these sites.
Read Also: Mercedes To Phase Out Manuals And Cut Down Engine Options In Cost-Cutting Push
“In potential talks with interested buyers, high priority is placed on their long-term economic success and the continuation of the Mercedes-Benz’s operations,” the spokesperson added.
Daimler believes that each facility could sell for between €30 million and €40 million ($36 million to $48 million).
In October 2020, Daimler announced plans to slash 20 per cent from its operating costs by 2025 while also cutting its model lineup and increasing its investment into electric vehicles. The company has previously said that it would cut 10,000 jobs by 2022 and in June 2020, suggested that another 10,000 jobs were on the chopping block.
“In potential talks with interested buyers, high priority is placed on their long-term economic success and the continuation of the Mercedes-Benz’s operations,” Kallenius stated at the time. “That’s why we have refocused and are launching our new strategy. We intend to build the world’s most desirable cars. It’s about leveraging our strengths as a luxury brand to grow economic value and enhancing the mix and positioning of our product portfolio.”
