Mercedes-Benz production in Germany is not competitive by international standards, partly due to high labor costs, the premium automaker said after one of its top managers warned employees that two plants could be closed. Reuters reports, UNN writes.
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The company said in an email to Reuters that it wants to preserve its plants and jobs in Germany. "But to do so, we need framework conditions that will help increase productivity in Germany," it added.
On Monday, Mercedes production chief Michael Schiebe told employees gathered at the automaker’s 111-year-old plant in Sindelfingen that plant closures could become possible if costs are not reduced.
Our clear goal is to preserve all our German facilities. If we fail to do so, we will have to close one German car assembly plant and one German powertrain production plant
Mercedes did not specify which plants were at risk.
A representative of Mercedes’ general works council said that threats to close plants were not a way to determine the company’s future and warned of determined employee resistance to such plans.
If management believes it can pressure employees with the ultimatum "concessions or plant closures," our response is unequivocal: "Not under our watch
The employee meeting took place against the backdrop of nationwide protests organized by the IG Metall trade union, during which tens of thousands of automotive industry workers demonstrated against mass layoffs in their sector. The industry is trying to compete with cheaper Chinese manufacturers while also being affected by significant U.S. tariffs.