Daimler is selling 25 Mercedes-Benz dealerships across Europe, may generate up to $1.2B (€1 billion) from the sale.
The dealerships are located in the United Kingdom, Spain and Belgium.
There are approximately 2,800 people working at the 25 dealerships.
The move is a step toward Mercedes-Benz’s plans to cut off 20% from the operating costs by 2025.
According German publication Handelsblatt, the reason behind the decision is Chief Executive Ola Kallenius’ quest to boost cash reserves and reducing fixed costs.
The 25 dealerships are located in the United Kingdom, Spain and Belgium. There are approximately 2,800 people working for the venues.
According to experts in the automotive industry, Mercedes parent company could expect to get an amount between €30 to €40 million for each of the facilities.
So how will Mercedes-Benz sell cars without the dealerships?
The Covid-19 pandemic period has proven to Mercedes that online services are faster and cheaper. So it is targeting to retrofit the interaction of customers from face to face to online.
Mercedes-Benz can also externalize the sales by passing on this responsibility to other dealerships networks across the continent.
A Daimler spokesperson confirmed the information for Automotive News Europe and the move is a step toward Mercedes’ plans to cut off 20% from the operating costs by 2025.
Last year, Mercedes said it will achieve these targets by reducing its current model lineup and increase the investment into the development of electro-mobility.