Daimler seeks to sell French factory in production overhaul

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The move comes as the auto industry faces overcapacity and plunging demand for new cars in Europe.

The restructuring charge will be a three-digit million euro amount, the company said.

Daimler, which owns the Mercedes-Benz and Smart brands, had used the Hambach factory to produces electric and combustion-engined variants of its two-seater Smart vehicles, making more than 80,000 cars in 2017.

But production of the Smart will move from France to China after Daimler last year said it will build its next generation of Smart electric cars through a joint venture with Geely (HK:0175).