Mercedes May Shut Some Factories In Germany Due To High Labor Costs

Member of the management board and director of production of Mercedes-Benz Michael Schiebe said that it is possible to close the factories of this car manufacturer in Germany due to high labor costs, adding that the company will try to avoid that extreme scenario.

Mercedes wants to reduce production costs and increase productivity in Germany, and management is asking employees for greater flexibility, including the possibility of longer working hours without salary increases, as an alternative to downsizing, Schiebe said in an interview with Handelsblatt.

On that occasion, he defended the doubling of capacity at the Mercedes factory in Kecskemet, Hungary, and stated that this investment should help preserve jobs in Germany by reducing the overall cost base.

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