Mercedes-Benz halts new investment in German plants, considers closures
The automaker said deadlocked talks over labor costs and working hours left it no choice as it examines sites that can remain profitable.
- On Thursday, Mercedes-Benz announced it is halting all further investments at its German sites as cost-cutting negotiations with staff representatives have stalled.
- Like other German manufacturers, Mercedes has faced stiff Chinese competition and high costs, prompting the carmaker to cut its annual outlook last month.
- Mercedes board member Michael Schiebe stated the company is now "forced to carefully examine which German sites we would have to close" if cost restructuring fails.
- The announcement follows mounting pressure from the works council and IG Metall trade union, with management unable to find a path forward despite "numerous intensive discussions."
- While Schiebe noted management still hopes for a breakthrough in talks, the current stalemate reflects significant challenges facing the struggling German automotive sector.
249 Articles
249 Articles
The car manufacturer Mercedes-Benz wants to reduce its costs and now - as it is said - "concrete and detailed" checks the closure of plants in Germany. The step had already been threatened. The company demands far-reaching concessions from the workers.
Under pressure from Chinese competition, the German manufacturer has frozen any new domestic investment and is considering extending the working time of its employees without any wage increases. A red line for the IG Metall union that refuses to give in "to pressure and threats".
Mitteldeutsche Zeitung
Weakness in China, high costs and a austerity program: At Mercedes, the pressure on German locations is growing. The Board of Management is now slowing down – and is encountering decisive resistance.
Mercedes is halting new investments in its German factories and investigating possible closures. The background is deadlocked negotiations over lower production costs.
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