The premium automaker Mercedes-Benz is suspending all investments in Germany and is considering closing plants in order to cope with the high costs of producing cars in the country. This is stated in an internal memo to employees seen by Reuters on Thursday, reports UNN.
According to an interview with members of the management board published on the company’s internal network, management made this decision because it was unable to reach an agreement with the works council and trade union representatives on reducing labor costs.
Mercedes production chief Michael Schiebe said that management had "jointly decided to suspend all further investments in our German operations," citing high costs and the lack of an agreement on reducing them.
In recent months, Mercedes has been urging employees to find ways to save money. In September, Schiebe warned staff that two plants in Germany could be closed if no progress was made on the matter.
Mercedes-Benz may close two plants in Germany due to high costs23.09.26, 18:06
In a management message published on Thursday, this scenario began to appear more likely.
"We all want to avoid plant closures at any cost. However, unfortunately, we are now forced to examine this option in greater detail as well," management board member Britta Seeger said in the internal memo.