Mercedes-Benz sells branch in Neu-Ulm: What does that mean for the employees?

Mercedes-Benz sells branch in Neu-Ulm: What does that mean for the employees?

In a significant turnaround for the automotive industry in Germany, Mercedes-Benz has announced the impending sale of its own car dealerships. This was recently demonstrated by the first transaction in which the Neu-Ulm branch was handed over to the car dealers Kreuter Medele Schäfer and Abel+Ruf. The change of ownership will take place on December 1st, as per the Augsburger Allgemeine reported. This decision affects around 8,000 employees in around 80 companies, and although there are many questions, Mercedes assures that nothing will change for the employees in Neu-Ulm.

But how did this step come about? The group announced in January that it would conduct an audit of the sale of its car dealerships. In recent months, intensive negotiations have been taking place between the works council, unions and management, which have also been accompanied by numerous protest actions by employees. For example, 25,000 employees took part in a nationwide day of action for their labor rights IG Metall reported. The agreement on the sales strategy, which was lengthy, includes key points that are intended to ensure that no layoffs are made until the end of 2029 and that the transitional compensation amounts to an average of 85,000 euros.

Conversation with those involved

The almost 200 employees in Neu-Ulm were informed about the change of ownership at a works meeting. The sales price remains under wraps, but there are clear requirements for buyers: they must have sufficient trading expertise and economic strength. Mercedes-Benz also excludes sales to pure financial investors. According to a Mercedes spokesman, customer support will also remain unchanged, which should make the transition easier.

Christine Kuwaldt, the works council chairwoman of the Frankfurt/Offenbach branch, is critical of the decision and describes the step as strategically wrong. However, IG Metall is doing everything it can to secure the rights of its employees and sees the sale not only as a danger, but also as an opportunity to secure the future in retail. Other works councils also offer different perspectives on the negotiations and their challenges. An example of this is the words of Javier Pato Otero, first representative of IG Metall Mainz-Wiesbaden, who also expresses concerns.

A look into the future

The two buyers, Kreuter Medele Schäfer and Abel+Ruf, have also founded a new company and now operate 15 locations in an economically potent market from Nördlingen to the Austrian border. In 2024, these gatherings generated a turnover of over 575 million euros and employed around 1200 people. Observers can expect further transactions in the coming weeks, as discussions with other potential buyers are already underway.

In summary, the sale of the Mercedes branches is a strategic decision, but one that is not without controversy among the workforce. The coming months will show how these changes will specifically affect employees and locations and whether the assurances made can actually be kept. The Franconian news report that jobs will be secured until the end of 2029 - good news for the affected employees in a time of uncertainty and change.