Mercedes-Benz’s sales operations in Asia and the U.S. work primarily with outside dealers. Over the past few years, Mercedes has sold a number of showrooms in the UK, Italy, Spain, Belgium and the Czech Republic, and is now aiming to streamline its dealership network in Germany.

According to Handelsblatt, Mercedes-Benz’s supervisory board is expected to approve the plan on January 19. The review will involve 20 branches, 80 dealers and 8,000 employees, with each branch expected to be worth up to 40 million euros (approximately $43.5 million).

Affected locations include distribution shops near Donnersbergerbrücke in Munich, Salzufer in Berlin and Untertürkheim in Stuttgart.

Mercedes-Benz said in a statement, “Each retail dealership will be reviewed separately and assessed on its own merits.” The company ruled out the possibility of closing the dealerships.

t is reported that Mercedes-Benz requires potential buyers to have “expertise in automotive retail” and to guarantee the employment of German employees, “with the aim of ensuring the long-term sustainability of regional employment and the presence and competitiveness of the branch.”

Mercedes owns lucrative car dealerships, which are relatively attractive assets. In the long run, however, Mercedes wants to focus more on building valuable and profitable cars. Dealership sales are not necessarily one of its strengths. External dealer groups tend to be faster, more flexible and more efficient, and can better bundle sales functions to achieve greater economies of scale.

This is particularly important as Germany is Mercedes’ third largest sales market worldwide. Mercedes CEO Källenius wants to reduce the number of “own-retail” operations in Germany, which he describes as “obsolete relics of the last century”.

In the course of the costly electrification transition, Källenius wants to concentrate all available financial resources on building popular models that generate high profits. Consequently, investments in other areas had to be reduced.