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.
108 Articles
108 Articles
Automaker Mercedes-Benz is considering closing factories in Germany and threatening to halt further investments in its home country. This is stated in an internal message for employees of the German group, which news agencies AFP and dpa reported on.
Mercedes to halt German investments, considers plant closures
Mercedes-Benz announced it will halt all investment in its German sites and is considering plant closures amid high costs and competition from China. Read More: https://punchng.com/mercedes-to-halt-german-investments-considers-plant-closures/
Mercedes-Benz halts new investment in German plants, considers closures
The Stuttgart carmaker is temporarily halting all further investment at its German sites. Possible plant closures are looming, increasing pressure on staff, works council and IG Metall. Volkswagen and Audi have also announced major savings programmes.
dagelijksestandaard.nl
STUTTGART (ANP) - Automaker Mercedes-Benz is considering closing factories in Germany and is threatening to halt further investments in its home country. This is stated in an internal message for employees of the German group, reported by news agencies AFP and dpa. Mercedes-Benz is in talks with the union...
Due to high costs and falling profits, MERCEDES-BENZ is considering closing factories in Germany and suspending all further investments in its plants there.
Another German car brand is reporting major problems in coping with global competition. Management believes that labor costs are too high.
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