Azernews.Az

By Alimat Aliyeva

German automaker Mercedes-Benz has sold all of its dealerships in Berlin to Canadian businessman Kuldip Billan, head of the Alpha Auto Group, AzerNEWS reports.

The transaction includes seven dealership branches in the German capital, which together employ around 1,500 people. According to reports, Mercedes-Benz also plans to divest additional dealerships in major cities such as Hamburg, Munich, and across the industrial Rhine-Ruhr region. In total, these changes could potentially affect up to 8,000 jobs.

Employees in Berlin were reportedly informed about the sale via email and offered a choice between financial compensation or a short-term job security guarantee lasting only one year. After this period, existing contracts would be terminated and replaced with new agreements under the new ownership. However, it remains unclear whether the new owner will fully adhere to existing collective wage agreements and labor protections.

As the newspaper Bild notes, staff at Mercedes-Benz dealerships in Berlin had been attempting to block the sale for two years, but their efforts were ultimately unsuccessful.

Analysts suggest that this move reflects a broader strategy by major automakers to streamline retail operations and shift toward more centralized or digital sales models.