According to a report by Reuters, Mercedes-Benz has warned workers that two of its plants in Germany could close due to uncompetitive production, particularly due to high labour costs.
In a statement sent to the news agency, the carmaker said it wants to maintain plants and employments in Germany but it required “framework conditions that boost productivity” in order to do so. For now, the warning is conditional and the company has not named any locations or set a timetable for any potential closures.
It was reported that on Monday (August 21, 2026), Mercedes-Benz production chief Michael Schiebe told workers at the company’s Sindelfingen plant that closures could be a possibility if costs were not reduced.
“Our clear goal is to maintain all of our German locations,” Schiebe said, adding that this required a joint commitment to cost measures. “If we are unable to do this, we will have to close one German assembly plant and one German powertrain plant,” added, according to excerpts of his speech shared by the company.
In response, a spokesperson for Mercedes-Benz’s general works council, the company’s central employee representation body, said, “threatening plant closures is no way to shape the future. Anyone who resorts to such threats must expect our determined resistance.” “If the management board believes it can pressure employees with the ultimatum of concessions or plant closures, our answer is a clear ‘not on our watch’,” she added.
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Maybe, just maybe, if they didn’t use cheap looking cheap feeling materials and not cheap out on build quality? Who are we kidding, it’s Mercedes, of course cutting corners has always been the name of the game.
s70 conti killer is really living up to its name
ROTFLMFAO Local labour cost too high? Should get enslaves migrants from North Africa, West Asia, South Asia there wages is way lower wokay
Time to die
They have to face the facts… they are no longer competitive… living on name only… they have made good nice cars before but it’s no longer as attractive in today’s market full of cheaper choices with better specs.