Mercedes to Halt German Investments, Mulling Plant Closures
Mercedes-Benz said management could not reach a cost-cutting deal with unions and is now reviewing which German sites it might close.
- 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.
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93 Articles
Another German car brand is reporting major problems in coping with global competition. Management believes that labor costs are too high.
The German Auto Concert Mercedes-Benz decided to freeze all further investment in production in the country and allow the closure of factories in the country against the backdrop of discussions on reducing staff costs...
There is no solution in sight in the negotiations for cost reductions at Mercedes. The Group is now increasing the pressure: The Management Board is putting all investments in German locations on ice - and wants to check factory closures.
ledauphine.com
Mercedes-Benz announced this Thursday the suspension of any new investment in Germany and could eventually remove factories in the country.
We failed to agree on cost reduction.
"Without readjusting the cost structure, the automotive industry in Germany will disappear," explains an automotive expert.
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