Mercedes-Benz affiliate company changes hands for the first time
Mercedes-Benz Kicks Off Sale of German Dealerships
Mercedes-Benz Group has initiated the sale of its Own Retail dealership operations in Germany as part of a structural review, according to recent reports. The sale, which began in 2024, has seen agreements reached for locations in Koblenz and Neu-Ulm in the second quarter of 2025, with more expected to follow.
The sale is part of a broader strategy to make Mercedes-Benz sales future-proof. The Group is reviewing each location individually, assessing potential buyers based on their trading expertise, entrepreneurial competence, economic strength, investment readiness, and openness towards employee representatives. Notably, no pure financial investors are to be sold to.
The sale of the Neu-Ulm branch was the first to be signed, and Sterne Group GmbH has been awarded the contract. The company has a long-term concept for the Neu-Ulm location. However, the impact of the agreement on the employees' job security or working conditions remains unclear.
The sale process appears to involve negotiations with interested parties, initiated as part of a strategic transition from direct retail operations towards a possibly different operational or partnership model. The Group has not disclosed specific details about the agreements' key points, nor has it provided information about the nature of the protests by employees that led to the agreements.
Ergun Lümali, the head of the works council, initially criticized the sale and announced resistance. Around 8,000 people in Germany, employed across approximately 80 operations, are affected by the sale of Mercedes-Benz's car dealerships.
Despite global challenges such as tariffs and trade tensions affecting other regions, the broader German market for Mercedes-Benz showed positive sales growth in early 2025. Dealership lots remain full with inventory, reflecting shifting market dynamics rather than shortage, and discounting is occurring due to factors like high interest rates impacting customer purchasing behavior.
Mercedes-Benz is in constructive talks with potential buyers for further locations, but no definitive deals have been announced beyond Koblenz and Neu-Ulm as of mid-2025. The Group expects the impact from these sales on profitability and cash flow in early 2025 to be immaterial, indicating a controlled and phased approach to restructuring its German retail presence.
[1] Mercedes-Benz Group Initiates Sale of Own Retail Dealerships in Germany
[2] Sterne Group GmbH Awarded Contract for Mercedes Dealership in Neu-Ulm
[3] German Mercedes-Benz Dealerships Show Positive Sales Growth in Early 2025
[4] High Interest Rates Impacting Customer Purchasing Behavior at German Mercedes-Benz Dealerships
[1] The sale of Mercedes-Benz's Own Retail dealership operations in Germany includes various sectors such as automotive, finance, and transportation industries, representing a significant shift in the Group's business strategy.
[2] Sterne Group GmbH, renowned for its trading expertise and entrepreneurial competence, has been selected to manage the Neu-Ulm dealership, marking a noteworthy participation in the automotive industry.
[3] In contrast to industry-wide challenges, the German market for Mercedes-Benz displayed a positive sales growth trend in early 2025, affecting various sectors like finance and automotive.
