Mercedes-Benz halts investments and considers factory closures in Germany

Mercedes-Benz has suspended all further investments in its German facilities and is actively considering the closure of domestic plants. This decision follows a failure to reach an agreement with labor representatives regarding cost-cutting measures, including the reduction of special benefits and an increase in working hours without additional pay. Management is aiming for an annual savings target of 800 million euros to address high production costs. While the company insists it wants to avoid closures, executive Britta Seeger confirmed that the option is now being evaluated more concretely.

Currently, negotiations remain deadlocked as the labor union IG Metall continues to insist on maintaining the standard 35-hour work week. As a symbolic gesture, the board of directors has announced they will forgo a portion of their own compensation to support cost-reduction efforts. This move reflects a broader crisis in the German automotive sector, which has already seen significant restructuring at other major firms, including Volkswagen and the supplier Schaeffler. The situation remains fluid, with no formal agreement reached and the threat of permanent facility closures looming over the company's German workforce.