Daimler reaches deal with labor to sell some Mercedes-Benz dealerships

Article by Christian A., on August 2, 2014

Daimler has struck a deal with labor representatives allowing it to divest some company-owned Mercedes-Benz dealerships in Germany as the carmaker bids to revamp its sales network in its home turf. As part of the agreement, Daimler vowed not to implement any mass firings until 2023 as well as to invest EUR500 million ($670 million) in sales outlets in the next few years.

As part of the revamp, the sales network will be packaged with regional distribution centers as of 2015. Showrooms for passenger cars and commercial vehicles, on the other hand, will be separated.

Daimler’s drive to shrink its wholly owned retail organization in Germany is part of an effort by its chief executive -- Dieter Zetsche -- to hike the operating profit of Mercedes carmaking division's to 10 percent of revenue. Ilse Kestin, an IG Metall union representative, said in April that Daimler’s sales organization could only churn out up to a 2 percent margin.

Zetsche is aiming for Mercedes to surpass rivals BMW and Audi to become the best-selling and most profitable luxury car brand by 2020. Ola Kaellenius, head of Mercedes sales, said in the statement that the recent deal is a clear commitment to Daimler’s retail organization, which will be “strengthened sustainably and becomes more competitive.

Daimler has also reached a deal over the future of its Sindelfingen site in Germany. Discussions over the matter focused on investments in the site in return for more flexibility on work times and job assignments. [source: automotive news europe - sub. required]

If you liked the article, share on:

Pin It

Comments

Recommended

Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries