Mercedes-Benz will cut 15 to 20 percent of its dealerships in Germany, and about 10 percent globally, as part of broad overhaul of its distribution network, executives said.
Mercedes is also moving toward a more direct-sales – or "agency" – model, and is targeting 80 percent of European sales through this method by 2025, with 20 markets in total, from five today.
At the same time Mercedes is targeting 25 percent online sales by 2025.
The automaker says the moves will cut distribution costs and allow it to rein in incentives as the automaker seeks to move even farther upmarket with higher average selling prices.
"We want to have more proximity to the customer and therefore have better control over pricing," Chief Financial Officer Harald Wilhelm said last week at Mercedes' capital markets day. "That's why we are moving from the current dealer role."