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VIENNA – Daimler will take over 50% stakes in import companies Mercedes-Benz Österreich based in Salzburg, Austria, and Mercedes-Benz Hungária located in Budapest, Hungary, from its Austrian partner Pappas Gruppe effective Jan. 1.
Both companies are responsible for the distribution of Mercedes-Benz cars and commercial vehicles as well as smart minicars and Fuso trucks in the two countries.
Daimler and Pappas are longtime partners. The current Austrian 50-50 Mercedes-Benz Österreich JV was formed in 1980, but the business relationship between Daimler and Pappas is much older. Pappas launched activities in Hungary in 1990.
Daimler also will take over Pappas’ 49% interest in Mercedes-Benz Financial Services Austria and its 10% stake in the Hungarian lending subsidiary.
Pappas in the future will focus on its retail activities in both countries.
Pappas also will close its parts warehouse in Salzburg, Austria, at the end of 2013 and cut 110 jobs at the facility. Daimler will serve its Austrian dealer network from its parts center in Nuremberg, Germany, starting in January 2014.
