
Due to high labor costs, the car manufacturer is temporarily stopping all further investments at German locations.
Mercedes-Benz is increasing the pressure on the works council and IG Metall: Due to high labor costs in Germany, the board is threatening to close plants and is stopping all further investments at its domestic locations for the time being.
AI-generated summary
Mercedes-Benz is negotiating with IG Metall to reduce labor costs in Germany. According to the company, the costs per hour of work here are significantly higher than in Eastern Europe.
Sindelfingen. In the discussion about labor costs, Mercedes-Benz is increasing the pressure on the works council and IG Metall and is threatening to close plants. Human Resources Director Britta Seeger explained in an interview published on the intranet that they wanted to put together a package that would have a noticeable impact and at the same time be socially sustainable. A quick agreement is not in sight. "We are therefore now forced to examine specifically and in detail which locations we can still afford in Germany. We all want to avoid factory closures at all costs. Unfortunately, we now have to pursue this option in more detail."
According to the intranet post, production director Michael Schiebe said that, despite numerous intensive discussions, no solution corridor could currently be identified and that it was not possible to invest in Germany with today's cost structures, the board had jointly decided to stop all further investments in the German locations. The costs of an hour of work in production in Germany are sometimes up to five times higher than in locations in Eastern Europe. The discrepancy is similarly high in administration.
A few weeks ago, Schiebe announced the closure of two plants in Germany if costs were not reduced. A German bodywork and a German powertrain plant would then be affected. Bodyworks are factories where cars are assembled. In Germany, Mercedes-Benz has these plants in Sindelfingen, Rastatt, Baden, and Bremen. Powertrain factories are factories in which components for the car are manufactured. These are available in Stuttgart-Untertürkheim, Affalterbach near Stuttgart, Berlin, Hamburg, Kamenz (Saxony) and Kölleda and Arnstadt (Thuringia).
AI outlook — possibilities, not facts
Detailed review of plant closures by the board.
Very likely · Within weeks

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