German automaker Mercedes-Benz has sold all of its Berlin showrooms to Canadian entrepreneur Kuldip Billan, head of Alpha Auto Group. APA reports citing newspaper Bild.
The seven branches in the German capital, which employ approximately 1,500 people, are at stake. Mercedes-Benz, according to the publication, also plans to sell dealerships in other cities—Hamburg, Munich, and the Rhine-Ruhr region—which could put a total of 8,000 jobs at risk.
Employees at stores in Berlin received notification of the deal via email. They were offered a choice between monetary compensation or a job guarantee for just one year. After that, their current contracts would be terminated and new ones signed. However, the extent to which the new owner will adhere to the wage-based agreements remains to be seen.
Bild noted that employees of Berlin Mercedes-Benz dealerships tried for two years to prevent the sale, but all their efforts were unsuccessful.