Mercedes Sells Stake in French Dealership image

Mercedes-Benz announced it has sold its stake in a dealership in France which has four showrooms.

As Mercedes plans to reduce its dependence on the automotive retail, considered a low profit margin business, and increase profitability and a target of 10% return on sales, it decided to sell its stake in the French dealership.

“This sale is consistent with Mercedes-Benz France’s network strategy of offering buyouts to committed partners in our national network,” Mercedes-Benz France said.

Mercedes has four dealerships in Lille, France, which in 2012 delivered 1,300 new vehicles and 1,500 used vehicles. Having a network of dealerships the automaker has direct access to its customers, who can quickly identify potential problems or spot upcoming trends.

Daimler plans to sell part of its retail network, close some locations and combine several sites. Last year the automaker’s retail operation reached 10 billion euro in sales, which means a loss of 45 million euro. Daimler has 98 Mercedes dealerships, accounting for half of the automaker’s vehicle sales in Germany, while BMW has 43 dealerships which account for about a quarter of its sales and Audi has 16 dealerships which account for less than 10%.

Source: yahoo.com