Mercedes-Benz Looks to Sell French Plant, Streamline Production Network
July 03 2020 - 9:51AM
Dow Jones News
By Cristina Roca
Mercedes-Benz AG said Friday that it is exploring the sale of
its car assembly plant in Hambach, France as the coronavirus
pandemic and its drive towards electric mobility push it to
streamline its production network.
The Daimler AG-owned car maker said it will book a negative
one-off in the mid three-digit million-euro range in the second
quarter of the year from the devaluation of fixed assets. This
shouldn't affect the company's industrial business free cash flow,
but Mercedes-Benz warned "additional burdens may arise in the
course of negotiations."
Mercedes-Benz said it needs to adjust its production capacity to
current market conditions after the coronavirus pandemic's blow to
the economy, and that the decision to start talks to sell the
Hambach plant in the north-east of France comes against this
backdrop. Around 1,600 employees work at the Hambach site.
The car maker also said it needs to become more efficient in
light of its electrification and digitalization drive, which
requires significant investments.
Write to Cristina Roca at cristina.roca@dowjones.com;
@_cristinaroca
(END) Dow Jones Newswires
July 03, 2020 09:36 ET (13:36 GMT)
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