Mercedes is going to be shrinking its dealership network to focus more on direct and online sales.

Their plan is to reportedly cut 10% of their dealerships globally by 2025. In Germany there will be 20% less dealers by 2028.

Would anyone miss their dealer if it was part of the 10% being removed?


The three-pointed star is focusing on increasing the number of direct sales by introducing this "agency" model in 15 additional markets by the middle of the decade compared to only five today. If everything goes according to plan, 80 percent of the volume achieved in Europe will be done through direct sales by 2025. Going down this role will enable Mercedes to not only have more control but also reduce distribution costs.

Speaking of which, its distribution network will be overhauled by cutting 10 percent of dealerships globally by 2025. Three years later, there will be up to 20 percent fewer showrooms at home in Germany. Automotive News Europe cites Bettina Fetzer, vice president of communications and marketing, saying Mercedes needs fewer big dealerships in mature markets. However, new outlets are being added in China. In addition, dedicated AMG, Maybach, and G-Class showrooms are on the agenda as well.