Mercedes-Benz has warned employees that two of its German factories could be closed unless the company succeeds in cutting costs, according to a report carried by Chinese outlet D1EV, which cited the German carmaker's own communications.
At a staff meeting on September 22 at the Sindelfingen plant, Mercedes production chief Michael Schiebe told workers that the risk of plant closures was imminent if costs were not brought under control. "Our clear goal is to retain all German production sites," Schiebe said, according to excerpts released by the company, adding that this would require joint efforts to implement cost-reduction measures.
"If we do not achieve our targets, we will have to close one German vehicle assembly plant and one German powertrain plant," Schiebe said. Mercedes did not specify which two factories would be at risk.
Industry-wide pressures
The meeting came as German metalworkers' union IG Metall organised nationwide protests, with tens of thousands of auto workers demonstrating against large-scale job cuts in the industry. German carmakers are squeezed between competition from lower-cost Chinese manufacturers and the burden of high US tariffs.
Mercedes said it wants to keep its German plants and preserve employment, but needs "framework conditions that improve production efficiency" to do so.
The warning is the latest sign of strain on Europe's legacy automakers as Chinese electric-vehicle brands expand overseas with more competitive pricing. German manufacturers have been cutting costs and reviewing factory capacity as demand for EVs in Europe grows more slowly than expected and as trade barriers reshape global supply chains.
D1EV, which republished the report from Chinese automotive outlet Gasgoo, noted that the closures would be a significant blow to Germany's industrial base if carried out. The company has not announced any specific timeline for the cost-cutting programme or which plants might be affected.
