Mercedes to halt German investments, considers plant closures

Mercedes-Benz has announced it will suspend all further investment at its German sites for the time being. The company is also considering potential plant closures more seriously as it examines which German locations can remain profitable in the long term.

Euronews reports that the decision comes amid high labor costs and stalled negotiations with the works council and IG Metall. According to Euronews, Mercedes claims that an hour of labor at its German plants can cost up to five times as much as at sites located in Eastern Europe. HR director Britta Seeger stated that while the company aims to avoid closures as much as possible, the option must now be pursued more seriously due to the strained cost situation.

Punch and Punch Nigeria report that the halt on investment and the consideration of plant closures are driven by high costs and competition from China. Euronews notes that management is seeking a joint package that provides savings while remaining socially acceptable, but talks with employee representatives are currently considered deadlocked.

Brief written by urgent.news from Punch, Punch Nigeria, Euronews — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.