Mercedes-Benz may close one of its factories in Germany
Mercedes-Benz may close one of its factories in Germany
The management of Mercedes-Benz has indicated that if employees do not agree to cost reductions, it intends to close one of its factories in Germany and move production to Eastern Europe.
According to the publication, the company's management is demanding the cancellation of certain payments to employees, including vacation pay and a portion of Christmas bonuses, as well as a review of the 35-hour work week.
Management points out that high labor costs at German plants are negatively impacting the company's competitiveness. This is driven, in particular, by a decline in Mercedes-Benz car sales, especially in the Chinese market.
One of the members of the Mercedes-Benz board openly stated that labor costs in Germany must be significantly reduced, otherwise the company might build a new factory in Eastern Europe.
Meanwhile, the company's works council has called such statements "blackmail" and an "extremely serious threat."
It is not yet known exactly which factory could be closed.
At the same time, Mercedes-Benz is actively expanding its production capacity in Hungary. The company's plant in the city of Kecskemét is expected to have a production capacity of up to 400,000 vehicles per year in the future.
Earlier, Mercedes-Benz Group Chief Executive Officer Ola Källenius announced that the automotive group could shift to producing military products due to global security threats.