Mercedes freezes German investments and considers closing two factories

Mercedes-Benz has halted new investments at its German plants and is reviewing their profitability. If negotiations with the works council and union IG Metall do not yield agreement on savings measures, two facilities could be closed — a vehicle assembly plant and a powertrain production facility; specific locations have not yet been identified. The company emphasizes that labor costs in Germany are as much as five times higher than in Eastern European factories. Management is considering measures including extended working hours without raises and elimination of vacation and holiday bonuses.

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