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[BUSINESS] · Germany, Hungary · 19 sources

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Mercedes-Benz warns of potential closure of two German plants

Mercedes-Benz has warned that it may be forced to close one vehicle assembly plant and one powertrain facility in Germany if production costs are not significantly reduced. Production chief Michael Schiebe communicated this warning to employees during a meeting in Sindelfingen, stating that while the company’s goal is to preserve all German locations, current labor costs make domestic manufacturing uncompetitive on an international scale.

To address these costs, management is exploring several measures, including increasing the standard weekly working hours from 35 to 38 or 40 hours without a corresponding increase in pay, and adjusting employee bonuses. The company has also noted that production capacity is being shifted toward lower-cost regions, such as the Kecskemét plant in Hungary, which has recently doubled its capacity.

These warnings have triggered significant industrial unrest. The central works council and the IG Metall union have expressed strong opposition, calling the potential closures a threat used to pressure workers. On September 21, approximately 175,000 workers across Germany participated in nationwide protests against job cuts and proposed changes to working conditions in the automotive sector.

Entities

Germany · IG Metall · Kecskemét · Mercedes-Benz · Michael Schiebe · Sindelfingen

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about 20 hours ago