The largest car concern is reducing investment projects in Germany - Reuters.
The decision of Mercedes-Benz to suspend all new investments in production sites in Germany and to begin a substantial examination of the possibility of closing factories has become another alarming signal for the German industry. One of the main symbols of German economic power called into question the further development of its production at home. The reason was a prolonged conflict with labor unions, high labor costs and the lack of cost reduction agreements. The company's management no longer sees the maintenance of all production sites in their current form as financially justified.
The Mercedes crisis is developing against the background of a widespread deterioration in the condition of the German automobile industry as a whole. Weaker demand in the Chinese market, increased competition from Chinese electric vehicle manufacturers, high production costs and tariffs in the US simultaneously weigh on the industry's profitability. Volkswagen is already undergoing a major restructuring, and auto parts supplier Schiffler has announced thousands of layoffs and the closing of several plants. According to Roland Berger, by 2030 the German car industry could lose at least 200,000 jobs.
This is especially painful for Germany, whose economic model has been based for decades on industrial exports, engineering excellence and the global competitiveness of automobile companies. Now even the largest national manufacturers are considering moving investment and production outside the country as a way to survive. The suspension of Mercedes' investments is no longer just a corporate conflict with labor unions, but further evidence of a structural crisis in the German industrial model, threatening jobs, investments and Germany's position as one of Europe's leading industrial centers.
Fresh international.