Mercedes-Benz has confirmed that it is considering the sale of its London-centric, nine-dealership Mercedes-Benz Retail Group car retail operation in the UK.

The German premium car brand confirmed the plan eleven months after a spokesperson insisted that it had no plans to divest of its London-centred retail operation in an interview with AM following the closure of dealerships in Bromley, Caterham and Chelsea.

Its potential shift away from physical retail came as franchisees told AM that the brand had begun consultation on a shift to agency model retail agreements, a move dismissed by a spokesperson as “speculation”.

An official statement issued to AM by Mercedes-Benz stated: “Mercedes-Benz has refocused its strategy and taken action on structural costs, targeting strong and sustained profitability. 

“As a result, the company is transforming its own retail business for Mercedes-Benz Cars and Vans and is therefore assessing a potential divestment of Mercedes-Benz Retail Group in the UK.