Mercedes-Benz Halts Investments in Germany
According to an internal memorandum obtained by Reuters, the main reasons behind the decision are high vehicle production costs in the country and the failure to reach an agreement on labor costs.
Mercedes-Benz is suspending all new investments in its factories in Germany and considering the possibility of closing some plants. According to an internal memorandum obtained by Reuters, the main reasons behind the decision are high vehicle production costs in the country and the failure to reach an agreement on labor costs.
Michael Schiebe, the company's Chief Production Officer, said management had been unable to reach an agreement with the works council and trade union representatives on reducing labor costs. As a result, the company decided to halt future investments in its German factories.
Mercedes-Benz has been putting pressure on employees in recent months to reduce production costs. In September, management warned that two factories in Germany could be closed if cost-cutting measures were not implemented. Board member Britta Seeger said the company wanted to prevent factory closures but now had to examine this option in greater detail.