Mercedes looking to sell $1.2 billion worth of showrooms in Europe

Mercedes wants to sell showrooms in three European countries to reduce fixed costs and finance electrical projects

Mercedes-Benz offers around 25 dealerships and a number of showrooms and service locations for sale in Europe, with most of the showrooms and locations for sale confined to Belgium, Britain and Spain. Disposing of the sites could raise the German carmaker up to 1 billion euros ($1.2 billion), according to Automotive News Europe, citing a report from Germany’s Handelsblatt.

Showrooms for freelancers and investors

Mercedes intends to sell these sites to groups of independent dealers or investors and believes that each one can be sold for amounts ranging from €30 million to €40 million. The automaker wants guarantees to ensure job security for people who work in these locations. The showrooms and service centers that the company announced to sell include about 2,800 people, whom Mercedes wants to keep in their jobs.

“In potential conversations with interested buyers, the highest priority is given to their long-term economic success and continued Mercedes-Benz operations,” a spokesperson for the automaker said.

Mercedes seeks to sell these sites to reduce the company’s fixed costs , and not just achieve a quick financial income, and some attribute the reason for the sale to the fact that the car maker is no longer able to deal with site maintenance and remove workers from its books.

Some argue that Mercedes can use the money to fund its large investments in electric cars, which are still somewhat in the early stages. Among those electric products is the financing of production and sale of the luxury sedan EQS later this year in the United States, and Mercedes is planning for many electric vehicles still on the way.

Mercedes is planning three electric EVs such as the EQS, the smaller EQB and a mid-size EQE on the road . It also has more electric cars coming closer in the future, and its development requires a lot of money.

Later this year, Mercedes will also unveil the latest generation of the venerable SL plate later in 2021. It will use a new chassis with a mixture of aluminum, steel, magnesium and fiber composites that will have a significant improvement in rigidity. The car will also have a lower center of gravity than the current model.