Mercedes-Benz Plans 800 Million Euro German Labor Cost Cut

Mercedes-Benz plans to reduce labor costs in Germany by 800 million euros, according to a report by WirtschaftsWoche. The automotive manufacturer is considering several measures to achieve these savings, including increasing working hours without additional pay and adjusting holiday and Christmas bonuses. The company also intends to eliminate special payments to employees.

Management has warned that production in Germany has become too expensive. Executives stated that workers must commit to these cost-cutting targets or the company may close two German plants. Mercedes-Benz declined to comment on the reports.

These measures follow a broader trend of instability in the German automotive sector. The industry faces mounting pressure from low-cost Chinese competitors, the high costs associated with electric vehicle transitions, and new tariffs. Other major manufacturers, including Volkswagen and BMW, have already implemented significant job cuts and operational overhauls to remain competitive.