Mercedes hit by battery shortage, supply chain woes and worker protests

Mercedes had to cut output at its Bremen plant because of a shortage of batteries for the new electric GLC SUV. The batteries were supposed to come from CATL's new factory in Debrecen, Hungary, but production there has been halted over environmental‑permit and wastewater problems, forcing the company to import cells from China – a shipment that takes about six weeks. In addition, floods at a Moroccan supplier have disrupted the supply of boardnet cable systems, further delaying the GLC rollout; only roughly 3,300 GLCs were registered by the end of May, far fewer than rival models.

At the same time, Mercedes announced a radical cost‑cutting programme that would keep employee salaries unchanged while extending working hours from 35 to 40 per week. The plan sparked IG Metall‑backed protests by staff at sites near Karlsruhe, such as Kuppenheim and Rastatt, with additional demonstrations planned in Hamburg and Berlin. Workers are demanding a genuine 35‑hour week and greater transparency as the company seeks to reduce costs.