Automaker: Mercedes stops all investments in Germany - plant closures become more likely
Negotiations at the car manufacturer over reducing labor costs in Germany have stalled. Management is now resorting to drastic measures.
Mercedes-Benz has halted all investment plans in Germany, with factory closures and further relocation to foreign countries becoming increasingly likely, according to an internal interview published on Thursday. The information was gleaned from the Handelsblatt, which obtained access to the document. Currently, negotiations between the company's management and employee representatives are underway to cut costs in Germany, but no progress has been made after months of talks.
In the interview, Production Director Michael Schiebe stated that the board collectively decided to stop further investments in Germany. However, despite extensive discussions, there is no clear path to a solution, according to Labor Director Britta Seeger. As a result, the company is now forced to "concretely and detailed" review which German locations they can afford to maintain.
The interview further reveals that Mercedes wants to avoid factory closures at all costs, but this option "must now be pursued more concretely," Seeger admitted. If an agreement cannot be reached, the company will take "very tough steps," and these measures need to be prepared by Mercedes, even if it is not preferred.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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