Mercedes May Shed Some German Dealerships

Daimler AG's Mercedes-Benz Cars unit is revamping its 144 company-owned dealerships in Germany, which could include selling, closing or merging some of those outlets, Automobilwoche reports.

Daimler says it seeks to improve the profitability of its own retail stores to the level of independently run dealerships. CEO Dieter Zetsche wants to shed outlets as part of his €2 billion cost-cutting campaign, according to Reuters, which cites internal company documents. The news service notes that the move would allow Mercedes to shrink its retail staff of 16,000 employees in Germany.

U.S.-based Penske Automotive Group tells Automotive News that it might be interested in buying some of the Mercedes outlets, if Daimler decides to sell them. Penske already has 35 non-Mercedes dealerships in Germany most of them Audi, Lexus, Toyota or Volkswagen stores.