SVT Nyheter26 minutes agoBusiness1 min read

Mercedes stops all investments in Germany

Quick Look

Mercedes-Benz is halting all further investment in its German plants after negotiations with unions over cost cuts failed to make progress.
Management is now considering factory closures if the cost structure does not change.
Competition from China and high costs are putting pressure on the entire German car industry.

AI-generated summary

Why It Matters

Mercedes-Benz is the third major German carmaker, after Volkswagen and BMW, to cut its full-year forecasts. Negotiations with union representatives on cost reductions have been without progress, leading the company to take a tougher line.

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Fierce competition from China and high costs are putting pressure on Germany's car industry. Last week, Mercedes-Benz became the third major manufacturer, after Volkswagen and BMW, to cut full-year forecasts.

Negotiations are ongoing with union representatives to be able to lower costs but without progress, and now Mercedes chooses a harder line.

- The management has jointly decided to stop all further investments in the German facilities, says board member Michael Schiebe in an interview on the company's intranet, according to the AFP news agency.

According to him, management sees no possibility of agreeing with the unions.

- We are now forced to carefully examine which German facilities may have to be closed if we do not succeed in bringing about a change in the cost structure.

What to Watch

AI outlook — possibilities, not facts

Mercedes-Benz will announce which German plants may be closed if the cost structure does not change
Likely · Within weeks

Open Questions

Which specific German facilities may be closed?
When can a decision on factory closures be expected?
How many employees are affected by a possible stop in investments?