STUTTGART (dpa-AFX) - The divestment process for Mercedes-Benz's company-owned dealerships is gaining momentum, including in Southwest Germany. The restructuring is proceeding according to plan and is at various stages depending on the region, a spokesperson for the Stuttgart-based automaker told the Deutsche Presse-Agentur.

The Schwäbisch Gmünd site is currently being prepared and is expected to enter the active market phase later this year. This implies that Mercedes will officially offer the location to potential buyers and enter into formal negotiations with interested parties from that point forward.

Divestitures for the larger clusters in Stuttgart and Mannheim/Heidelberg/Landau are currently in the planning phase. According to the spokesperson, the detailed timeline for these locations is still being finalized. Meanwhile, the sale of the Neu-Ulm site has already been successfully completed. For the Reutlingen branch, contractual agreements were signed with a buyer in the first quarter of this year, with the full transfer of operations scheduled for the second half of 2026.

The aforementioned branches comprise a total of twelve locations, currently employing approximately 1,400 people.

On Tuesday evening, Mercedes announced that its Berlin-Brandenburg branch, which includes seven dealerships, will be acquired by the UK-based dealer Global Auto Holdings (GAHL). This portfolio includes the Salzufer dealership, which the company identifies as the largest Mercedes-Benz operation in the world.

Divestment plans long in the making

Mercedes' intention to sell its dealerships has been public knowledge for over two years. According to figures released by Mercedes-Benz at the time, approximately 8,000 employees across some 80 operations in Germany were affected. Following employee protests, Mercedes announced an agreement with the General Works Council in the summer of 2024, outlining key terms for potential transfers of operations to new owners.

According to a Mercedes spokesperson, the agreement included a provision that the job security guarantees at Mercedes-Benz - which at the time ruled out compulsory redundancies until the end of 2029 - must be maintained by potential buyers. Collective bargaining obligations for the acquirers were also to be ensured. Another core element of the agreement was a one-time payment to employees, as reported at the time.

Last year, Mercedes already divested branches in Koblenz, Mainz, Dortmund, and Lübeck, according to the DAX-listed group. Earlier this year, in addition to Reutlingen, contracts were signed for the sale of branches in Aachen, Kassel, Würzburg, Wuppertal, and Hanover./rwi/DP/jha