Mercedes-Benz will take steps, as part of a broad overhaul of its distribution network, to cut 15 to 20 percent of its dealerships in Germany and about 10 percent globally, executives said.
There are no plans for a U.S. dealership consolidation, the automaker said.
The downsizing in its global brick-and-mortar retail network comes as Mercedes moves toward a more direct-sales — or "agency" — model. The automaker believes 80 percent of its European auto sales will occur via this method by 2025. It also is targeting 25 percent online sales by 2025.
Mercedes says the moves will cut its distribution costs and allow it to rein in incentives as it moves even farther upmarket with higher average selling prices.
"We want to have more proximity to the customer and therefore have better control over pricing," CFO Harald Wilhelm said this month at Mercedes' capital markets day. "That's why we are moving from the current dealer role."