FRANKFURT -- Daimler plans to significantly reduce the number of showrooms and service sites it owns in Europe in a deal that could fetch up to 1 billion euros ($1.2 billion), German business daily Handelsblatt reported, citing industry sources.
About 25 showrooms and service sites in Britain, Spain and Belgium with about 2,800 employees are up for sale, Handelsblatt said.
The move is part of Daimler CEO Ola Kallenius's plan to boost cash reserves and reduce fixed costs, the paper said.
A Daimler spokesperson said the company was exploring the possible sale of retail locations in those markets, but stressed that any deal would have to include job security for employees affected.
"In potential talks with interested buyers, high priority is placed on their long-term economic success and the continuation of the Mercedes-Benz's operations," the spokesperson said by email.
The spokesperson said retail locations in other European markets are not currently for sale.
As part of an overhaul of its retail operations in its home market, Daimler in 2015 sold company-owned Mercedes dealerships in Germany to China's Lei Shing Hong, the world's largest Mercedes dealership group.