The company is also considering the option of closing the factory
AI-generated summary
Mercedes-Benz has been keeping up the pressure on employees to achieve cost savings for months. In September, manager Michael Schiebe signaled that two factories in Germany could close if progress was not made.
According to an internal letter sent to employees and obtained by Reuters on Thursday, Mercedes-Benz is stopping all new investments in its facilities in Germany due to high car production costs. The company is also considering the option of closing the factory.
According to an interview with board members published on the company's internal network, management made this decision after failing to reach an agreement with the workers' council and union representatives on reducing labor costs.
Michael Schiebe, Mercedes-Benz's director of production, said that the management "jointly decided to stop all future investments in our facilities in Germany", citing high production costs and the lack of agreement on reducing these costs.
Mercedes-Benz has been keeping up the pressure on employees to achieve cost savings for months. Schiebe warned employees in September that two factories in Germany could close if progress was not made on this issue. The message shared by the administrators on Thursday indicated that this possibility was getting stronger.
"We all want to avoid factory closures at all costs. But unfortunately, we now need to evaluate this option in more detail," board member Britta Seeger wrote in her internal letter.
AI outlook — possibilities, not facts
Mercedes-Benz may further evaluate the factory closure option.
Likely · Within weeks
Labor cost discussions can be continued with the workers' council and union representatives.
Likely · Within weeks
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