German carmaker Mercedes-Benz is looking into the possibility of closing factories in Germany, due to high production costs and pressure to cut spending.
According to German media reports, the board of directors has decided to temporarily suspend all further investments in German factories, while the company is reviewing the future of its production capacities in the country.
The director of Mercedes-Benz Human Resources, Britta Seeger, has stated that the company must now examine concretely which factories can continue to function.
Now we are obliged to examine concrete and in detail which factories in Germany can still maintain, Seeger said, adding that although the company wants to avoid closures at any cost, this option should be taken more seriously.
One of the main reasons for this review are high production costs. According to company figures, an hour’s work in German factories may cost up to five times that in some Eastern European countries.
For this reason, company leaders are seeking changes in working conditions, including longer hours of work without additional compensation, as well as cuts in particular benefits, such as profit sharing, holiday payments and end-of-year rewards.
The production director, Michael Schiebe, had warned earlier that two factories in Germany could be shut down unless cost cuts are achieved. According to reports, the danger may include an assembly factory and a factory producing parts of the transmission system.
Automotive industry expert Ferdinand Dudenhöffer has described this development as expected, arguing that high costs and the lack of adaptation of spending structure are increasingly making it difficult to produce in Germany.
Meanwhile, the German automotive industry is facing major challenges, as even Volkswagen has earlier warned factory closures and considerable job cuts.
The situation comes at a time when the German economy continues to face difficulties, while 2026 forecasts speak of limited economic growth.
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Source Layer: Signal
