Mercedes-Benz is considering the closure of two production facilities in Germany, specifically one assembly plant and one powertrain plant. The company currently operates three vehicle assembly sites and seven powertrain plants within the country.
Production chief Michael Schiebe stated that while the goal is to maintain all German locations, closures may become necessary if productivity targets are not met. The company is currently seeking new cost-saving measures through negotiations with the IG Metall union.
Financial pressures on the automaker include $1,1 billion in losses from US tariffs in 2025 alone. Additionally, the company reported a 30% drop in sales in China during the second quarter, resulting in an $800 million impairment.
The automotive group faces intense competition from Chinese manufacturers such as BYD, Geely, GAC, and Changan. These rivals offer vehicles at lower price points, further complicating the competitive landscape for traditional European brands.
The IG Metall union has publicly opposed the potential plant closures, describing the management's approach as a threat. Representatives of the union have promised determined resistance against any ultimatum involving concessions or site shutdowns.
