Mercedes Says German Production Not Competitive
The automaker said it needs cost cuts and productivity gains to keep all German plants open, as workers and the works council pushed back.
- Mercedes-Benz warned yesterday that it may close one vehicle assembly site and one powertrain facility in Germany if cost-cutting measures are not agreed upon, though no specific locations were identified.
- The Stuttgart-based manufacturer aims to reduce production costs by 10 percent through 2027 to improve international competitiveness, reversing earlier commitments that excluded plant closures.
- Even as Mercedes demands productivity gains, it continues allocating new models to German sites, including the GLA at Rastatt and the full-electric AMG GT 4-Door Coupe at Sindelfingen.
- Metall staged nationwide protests involving 175,000 workers from automakers and suppliers, with Mercedes employees participating to oppose the closure threat and negotiation tactics.
- Workers pushed back, stating "not on our watch" in response to closure threats, arguing the ultimatum is not an acceptable way to conduct negotiations with management.
25 Articles
25 Articles
Two Mercedes Plants Face Closure if German Production Costs Remain High
Mercedes has put two German factories into a closure contingency if efforts to reduce production costs fail. Production board member Michael Schiebe told employees on September 21 that the company wants to preserve every German plant, but would have to close one vehicle assembly site and one powertrain facility if the necessary measures cannot be agreed. It should be highlighted that Mercedes hasn't identified either facility, and no... (continu…
The Mercedes-Benz Production Board has announced that it will have to close two German plants in the absence of cost reductions. This could also be one of the three German construction plants – and thus the Bremen site. Cars are joined together in construction works; next to Bremen, these are Sindelfingen and Rastatt. In Bremen, the announcement triggers shock waves.
Mercedes-Benz envisages the closure of two German plants for the first time. The car manufacturer demands lower costs. At its largest production site in Europe, these 70 percent are cheaper than in Germany.
Mercedes says German production not competitive, two plants under threat
Mercedes-Benz production in Germany is not competitive by international standards, in particular due to high labour costs, the premium automaker said on Tuesday, after a top executive warned workers that two plants could close.
Mercedes-Benz said on Tuesday that its German production is not competitive in international comparisons, mainly due to high labor costs. The announcement was made after one of the company's executives raised the prospect of closing two plants. We will also cover similar topics at our Portfolio Investment Day conference on October 21. One of the biggest investment events of the year is coming, where professional experts will tell you what is wor…
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