Mercedes-Benz has acknowledged that its German manufacturing facilities are currently struggling to maintain international competitiveness. The company specifically highlighted high labor costs as a primary factor affecting its operational efficiency.
Michael Hieber, a board member responsible for production and quality, warned employees that the company may be forced to close two German plants if costs are not reduced. The potential closures include one vehicle assembly plant and one powertrain facility.
The company stated that its goal is to preserve all German production sites and jobs. However, management emphasized that achieving this requires improved framework conditions to boost productivity across its domestic operations.
The General Works Council, representing Mercedes-Benz employees, has rejected the management's ultimatum. The council stated that using the threat of plant closures to pressure staff is not an acceptable strategy for future development.
The announcement coincides with widespread protests organized by the IG Metall union, involving tens of thousands of automotive workers. The German auto industry is currently facing significant pressure from lower-cost Chinese competitors and the impact of US tariffs.
