German Plant Closures Enter Mercedes-Benz Review

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Mercedes-Benz has halted further investment at its German plants while management examines potential site closures amid high manufacturing costs. A memo to workers, seen by Reuters on November 12, says the company could not reach agreement with its works council and union representatives on reducing labor costs. Production chief Michael Schiebe said management jointly decided to halt further investment at German locations, while board member Britta Seeger said potential closures must be explored in more detail. The report outlines the cost dispute and ongoing talks with IG Metall as the automaker considers its options.  Disclosure: This video contains stock footage and content created or enhanced using AI-assisted tools.

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00:00Mercedes-Benz says it's halting further investment in its German plants and exploring possible

00:05factory closures. The carmaker blames high manufacturing costs and stalled talks over

00:10reducing labor costs. No closures have been announced, but the investment freeze raises

00:15the stakes for workers in Germany's car industry. Management says it hasn't reached an agreement on

00:21savings with worker representatives and union negotiators. In September, the production chief

00:26warned that two German plants could close without progress. Now, management says it's examining that

00:32option more closely while negotiations with the union continue. The pressure stretches beyond

00:38Mercedes and across Europe's car supply chain. Parts supplier Schaeffler announced plans last week to

00:44cut 3,460 jobs. It cited weak demand for cars powered by combustion engines. For Mercedes workers,

00:52investment is on hold and factory closures remain a possibility. Disclosure. This video contains

00:58stock footage and content created or enhanced using AI-assisted tools.

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