Daimler May Sell 36 Domestic Dealerships

Daimler AG is pondering a plan that would sell off 36 of its company-owned car dealerships in Germany, according to the company's works council.

Last month Bloomberg News reported that Daimler might sell several outlets and could restructure the others into an independent company. The carmaker is considering the move to help improve its financial performance.

Bloomberg says an agreement prevents Daimler from selling its own dealerships until the end of next year or eliminating dealership jobs until the end of 2017. The works council says the carmaker intends to consolidate its German dealerships and eliminate about 340 administrative jobs.

Separately, Manager Magazin cites unidentified sources who say Daimler may shut down its Li-Tec lithium-ion battery cell factory in Kamenz, Germany, by 2016. The magazine opines that the company is likely to begin buying cells from LG Electronics Inc. and use them to make batteries for the next-generation electric Smart city car due two years from now.