Mercedes Says German Production Not Competitive
- 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.
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Mercedes has to save radically, now, according to a media report, concrete figures are available. The Executive Board apparently threatens with factory closures if there is no agreement.
Mercedes weighs €800m labour cost cuts in Germany, report says
Berlin: Mercedes-Benz is aiming to cut around €800 million in labour costs in Germany, according to a report by German business publication WirtschaftsWoche, which cited three people familiar with the matter.The report said the carmaker is considering a number of options, including increasing working hours without additional pay, adjusting holiday and Christmas bonuses, or eliminating certain special payments.Mercedes-Benz declined to comment on…
Mercedes-Benz may close two plants in Germany due to high costs <p>Mercedes-Benz has warned of a possible closure of an assembly plant and a power plant due to high costs. Workers prepare resistance.</p>
Mercedes-Benz is warning that it will have to close two plants in Germany without significant cost cuts. The automaker is demanding concessions from employees to make German production more competitive.
The company linked the future existence of one assembly and one power plant to a reduction in labour costs, but has not yet identified specific plants.
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…
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