In an interview published on the business’s intranet, and seen by AFPMichael Schiebe, the board member in charge of production, quality and supply chain management, informed staff members “the executive board has jointly decided to halt all further investments in German sites” as the car manufacturer continues to work out with unions.
Mr Schiebe stated the management group can’t see a course to an effective offer “despite numerous intensive discussions”and declared the business is “now forced to carefully examine which German sites we would have to close if we cannot achieve a change in the cost structure”
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The IG Metall union is supposedly requesting for a 5 percent pay boost. Britta Seeger, the business’s labour director, explained the union’s ask as “totally excessive” as it would “drive up labour costs, already high in Germany, when they are already far too high in international comparison”
Rather, Mercedes-Benz is proposing a “productivity offensive” where German plant workers work longer hours for no additional pay.
The car manufacturer presently runs a minimum of 8 factories in Germany: Affalterbach (AMG engines); Bremen (C-Class, CLE, GLC, GLC EV, EQE, SL); Düsseldorf (Sprinter/eSprinter); Hamburg (vehicle parts); Rastatt (A-Class, CLA, GLA); Sindelfingen (GLC, E-Class, S-Class, EQS, AMG GT); Untertürkheim (transmissions, batteries, motors); and Berlin (drivetrain parts).
Like other car manufacturers, Mercedes-Benz is dealing with extreme competitors from Chinese brand names, slower-than-expected use up of electrical lorries (EVs), and the expense of additional tariffs in the United States. Sales in China, the business’s biggest single market, are falling. In 2025, sales in China fell 19 percent compared to the year before.
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Last month, Mercedes-Benz modified its 2026 projection, stating it now anticipates to earn a profit of EUR5.8 billion (A$ 9.4 bn). That’s approximately even with last year’s earnings, the business at first forecasted a 15 per cent boost.
BMW and Volkswagen have likewise cut their earnings projections. Volkswagen is apparently dealing with the stiffest headwinds, wth the car manufacturer preparation to close 4 German factories and release 100,000 employees by the early 2030s.
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