Mercedes-Benz may close its German factories due to high labor costs
Michael Hübner, board member and production director at German automotive giant Mercedes-Benz, said in an interview with German media that rising labor costs in Germany could lead Mercedes-Benz to shut down its German factories and shift production capacity overseas.
Hübner emphasized that company management hopes to avoid this scenario and preserve jobs and production facilities in Germany. However, he stated that optimizing labor costs is essential to achieve this goal.
Specifically, Hübner pointed out that the weekly working hours at the company’s German plants should be increased from 35 to 40 hours, and the payment of special allowances should be re-evaluated.
German media previously reported that Mercedes-Benz Group will cancel annual bonuses for its 90,000 employees in Germany. Management also plans to extend weekly working hours without increasing pay. According to estimates by German media, the cost savings could exceed €10 million.
In April, Mercedes-Benz Group reported a quarterly net profit of €1.4 billion, a 15.5% decline compared to the same period last year.
Hübner noted that due to sharply intensified competition in Asia, Mercedes-Benz saw nearly a 30% drop in sales in China during the first half of the year. He added that other German automakers have been suffering losses in China for years.
Original source: toutiao.com/article/1871265420487683/
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