Mercedes-Benz has warned that one assembly plant and one powertrain facility in Germany may face closure if labor costs are not reduced. Production chief Michael Schiebe communicated this during an employee meeting, stating that maintaining all German sites is no longer guaranteed. The company has not specified which locations are at risk or provided a timeline for potential shutdowns.
The manufacturer currently operates three final assembly plants in Germany, located in Sindelfingen, Rastatt, and Bremen. Additionally, it maintains seven powertrain production sites in Untertürkheim, Affalterbach, Berlin, Hamburg, Kamenz, Kölleda, and Arnstadt. Management has not ranked these facilities by risk or confirmed which ones are under review.
The company justifies the potential closures by citing a lack of international competitiveness due to high labor expenses. Mercedes-Benz noted that production costs at its plant in Kecskemét, Hungary, are 70 percent lower than at its German sites. This cost disparity has previously influenced decisions to relocate the production of small cars and the G-Class to Hungary.
The warning serves as a strategic point in ongoing wage negotiations. Other German automakers are facing similar pressures, with Volkswagen initiating restructuring following a profit warning and Audi identifying potential closure risks at its Neckarsulm plant. A spokesperson for Mercedes-Benz confirmed the remarks made by Schiebe but provided no further details on upcoming decisions.
