Mercedes-Benz Retail Group has agreed a deal to transfer its North London dealerships to the ownership of top AM100 car retail group Sytner.
A spokesperson for the German premium car maker confirmed to AM today (May 31) that it planned to continue in its bid to divest itself of its UK car retail operation with the shift to the Penske Automotive-owned group – currently its largest UK retail partner with 14 franchised locations.
“With effect from the third quarter 2022, the North London Market Area will transfer to Sytner Group Ltd as a going concern,” a short statement from the OEM stated.
A statement issued by Sytner said: “Sytner Group has signed an agreement to acquire Mercedes-Benz dealerships in the UK from Mercedes-Benz Retail Group UK.
“The acquisition consists of five dealerships in the North London.”
AM understands that dealerships in Colindale, Loughton, Stratford, Temple Fortune, and Watford are understood to be part of the change of ownership, along with aftersales facilities at Heathrow, Wandsworth and Stratford.
The German premium brand’s car retail operation is likely to retain its Mercedes-Benz World operation in Weybridge along with its Croydon, West Bromley and Dartford dealership to the South of the capital.
News of the sale follows Mercedes-Benz announcement that it plans to axe up to 20% of its German franchised dealerships and 10% of its global network by 2025 as part of its shift to a direct, agency model retail model.
It also comes a year after it announced that it was “assessing a potential divestment of Mercedes-Benz Retail Group in the UK”.
The brand confirmed that plan eleven months after a spokesperson insisted that it had no plans to divest of its dealerships in an interview with AM following the closure of dealerships in Bromley, Caterham and Chelsea.
In July 2021 L&L Automotive acquired Mercedes-Benz Retail Group’s Hemel Hempstead dealership.
Four months later it continued to sell-off its UK car retail sites with the sale of Mercedes-Benz Retail Group’s Epsom dealership to Sandown Motors.
A multi-award-winning news journalist, Tom is news and features editor for Bauer Media’s AM brand. His role demands he keep abreast of all industry and business news to provide coverage of the franchised automotive retail sector and the wider automotive industry, while assisting in the management of the magazine’s production and AM events.
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