Mercedes sells 15 German stores to Chinese investor
Daimler AG is selling 15 Mercedes-Benz dealerships in eastern Germany to a unit of China's Lei Shing Hong Group in a bid to lift profitability.
The sale of Mercedes outlets to Stern Auto, including showrooms in Leipzig, Dresden and Rostock, affects 1,000 employees, Daimler said. The Chinese company started operations in Germany last year by taking over a Mercedes dealership in Erfurt.
In 2014, Daimler outlined plans to eventually sell 56 of the 158 outlets that it owns in Germany to outside investors. The sale will affect about 3,000 people out of a local dealership workforce of 15,000 employees.
Daimler CEO Dieter Zetsche has vowed to increase operating profit at the Mercedes automotive division and Smart brand to 10 percent of sales. Zetsche hopes to match the profit margins of rivals BMW AG and Audi AG.
Zetsche has not set a deadline for the goal after scrapping an original target date of 2012. Last year, Mercedes' profit margin was 8.3 percent.
The sale of Mercedes outlets to Stern Auto, including showrooms in Leipzig, Dresden and Rostock, affects 1,000 employees, Daimler said. The Chinese company started operations in Germany last year by taking over a Mercedes dealership in Erfurt.
In 2014, Daimler outlined plans to eventually sell 56 of the 158 outlets that it owns in Germany to outside investors. The sale will affect about 3,000 people out of a local dealership workforce of 15,000 employees.
Daimler CEO Dieter Zetsche has vowed to increase operating profit at the Mercedes automotive division and Smart brand to 10 percent of sales. Zetsche hopes to match the profit margins of rivals BMW AG and Audi AG.
Zetsche has not set a deadline for the goal after scrapping an original target date of 2012. Last year, Mercedes' profit margin was 8.3 percent.
