Mercedes-Benz plants in Germany threatened with closure

Mercedes-Benz is considering closing its plants in Germany due to high production costs and falling profits. The company acknowledged that the maintenance of all German plants may not be economically feasible. This is reported by DPA with reference to the statements of representatives of the concern.

A member of the board responsible for personnel matters, Britta Seeger, said that the company is forced to assess the financial feasibility of maintaining production sites. According to her, the management still seeks to avoid plant closures, but no longer excludes this option.

Now the concern intends to agree with representatives of employees a set of measures to reduce costs. At the same time, the proposals should provide a noticeable economic effect and take into account the social consequences for employees. Seeger does not expect a quick agreement with trade unions.

Mercedes-Benz Manufacturing Director Michael Schebe said that at the current cost level, new investments in German enterprises are inappropriate. According to him, the management made a joint decision to freeze further investment in production facilities in Germany.

Shebe also drew attention to the difference in staff costs. In some cases, wages in German enterprises cost companies five times more than in similar industries in Eastern Europe. There is also a significant gap in administrative costs.

A few weeks earlier, Schiebe warned that the group could close two plants in Germany if it failed to achieve cost cuts.

In recent years, Mercedes-Benz has faced a decrease in sales and a significant decline in profit.