Mercedes-Benz stops investing in factories in Germany and does not rule out closing them.
The management of Mercedes-Benz has decided to block further investments in the modernization and development of its factories in Germany. The reason was the lack of progress in negotiations with the trade union IG Metall and the labor representatives, from whom the company demands a significant cost reduction. The concern emphasizes that the current cost structure makes investments in the German automobile industry unprofitable.
Although there are still no orders to dismantle production facilities, management has initiated a wide-ranging audit of the efficiency of all local sites. One of the main demands of the company for the employees is to increase the work week from 35 to 40 hours without financial compensation. If the negotiations fail, the concern is ready to direct the production of new car lines to foreign factories.
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