FRANKFURT, July 29 Daimler's works'
council on Tuesday said it had agreed a deal to overhaul a
network of company-owned Mercedes sales outlets in Germany,
after management provided dealership employees with job
guarantees until 2023.
Daimler has been assessing its network of around 160 "Own
Retail" Mercedes dealerships, which account for about half of
the brand's car sales in Germany. Daimler now plans to sell
around 40 Mercedes-Benz owned sales outlets to third-party
Mercedes-Benz is trying to raise its return on sales, which
was 7.9 percent in the second quarter, an improvement over last
year's 6.6 percent, but still short of a 10 percent goal for the
division which includes the Smart brand.
Labour unions had feared that if dealerships in Germany were
sold the employment terms for their staff could be changed.
Mercedes employees will have a right to return to Daimler
and have their company pension contributions guaranteed for 10
years, a spokeswoman for the works council said.
In April, Daimler employees in Stuttgart staged a rally to
protest against the overhaul plans.
(Reporting by Edward Taylor; Editing by Greg Mahlich)