Mercedes to halt German investments, considers plant closures

Mercedes-Benz has decided to suspend all further investment at its German production sites for the time being. According to Euronews, the company is also considering possible plant closures in more concrete terms as it examines which German locations can remain profitable in the long term. Punch Nigeria reports that high costs and competition from China are contributing factors to these decisions.

The company's management board is facing pressure due to high labor costs and deadlocked talks with IG Metall and the works council. Euronews reports that HR director Britta Seeger stated that an hour of labor in German plants can cost up to five times as much as at sites in Eastern Europe. While Mercedes aims to avoid plant closures as much as possible, Seeger indicated that the option must now be pursued more seriously.

The company's goal remains to reach a joint agreement that achieves savings while remaining socially acceptable.

Brief written by urgent.news from Punch Nigeria, Euronews — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.