Mercedes considers closure of two factories

Increasing cost pressures in the German automotive sector have led Mercedes-Benz management to reconsider its production structure in Germany. According to a report by WirtschaftsWoche, the company is evaluating options that could save up to 800 million euros in labor costs to maintain the competitiveness of its domestic facilities.

The report states that three sources familiar with the matter confirmed Mercedes management's goal of reducing costs in Germany. Topics on the agenda include increasing working hours, reducing or eliminating certain additional payments, and utilizing production capacity more efficiently.

WORKING HOURS AND BONUSES ON THE TABLE

One of the most notable elements of the plan is the possibility of increasing the 35-hour work week to 40 hours without a salary increase. Additionally, cuts to annual leave and Christmas bonuses, or the complete termination of certain special payments, are also listed among the options being evaluated.

It is noted that the search for savings could also affect production facilities. It was reported that Michael Schiebe, a member of the Mercedes-Benz Board of Management responsible for production, stated at a company meeting in Sindelfingen that if costs cannot be reduced sufficiently, the closure of a passenger car factory and a facility producing powertrain components could be on the agenda.

The company management's primary goal is stated to be maintaining production in Germany as much as possible. However, shifting limited production capacity to facilities abroad remains a possibility.

Mercedes' investments in its Kecskemét plant in Hungary are also drawing attention during this process. It is noted that the annual production capacity of the factory in question has been increased to approximately 400,000 vehicles, which is considered part of the company's search for lower-cost production.