Business · Companies · 4 hrs ago
Mercedes-Benz pauses further investment at German sites
Mercedes-Benz has halted further investment at its German sites for now.
The German carmaker is also examining which locations it can afford to keep, and plant closures are being considered.
The company says its current costs make investment in Germany difficult, with labor costs sometimes five times higher than at plants in Eastern Europe.
Mercedes has faced falling sales and profits, including weaker demand in China, its largest single market.
Slower-than-expected electric car demand and US tariffs have added to the pressure.
The company says it wants to avoid closures, but its board will assess German sites in detail.
The decision comes as the company faces pressure from its works council and the IG Metall union.
Mercedes-Benz said on Thursday it was halting all further investment at its German sites for the time being.
The company is examining which German sites it can afford to maintain and is considering plant closures.
Board member Michael Schiebe cited high costs, including German labor costs that can be five times those at plants in Eastern Europe.
The decision comes amid pressure from the works council and IG Metall as the company faces declining sales and profits.
Mercedes-Benz is seeking to reduce costs in Germany by up to €800 million, according to Vedomosti.
- Who
- Mercedes-Benz, including its executive board.
- What
- The company is halting all further investment at its German sites for the time being and is examining possible plant closures.
- When
- Thursday, November 12, 2026.
- Where
- Mercedes-Benz sites in Germany.
- Why
- The company cited high costs and a lack of progress in talks with the works council and IG Metall.
This story does not have two clearly opposing sides.
Mercedes-Benz was reported to have threatened to close two plants if workers refused overtime.
Mercedes-Benz announced that it was halting all further investment at its German sites for the time being.
- Investment decision
- All further investment at German sites halted for the time being
- Labor-cost comparison
- German labor costs can be five times higher than at plants in Eastern Europe
- Potential closures
- The company is examining which German sites it can afford to maintain
- Savings target
- Up to €800 million in costs in Germany
- German assembly plants
- Sindelfingen, Rastatt and Bremen
5 sources
Mercedes-Benz to halt ‘all future investments’ in Germany
Mercedes-Benz заморозил инвестиции в производство в Германии
Autohersteller: Mercedes stoppt alle Investitionen in Deutschland
Autohersteller: Mercedes stoppt alle Investitionen in Deutschland – Werksschließungen werden wahrscheinlicher
Mercedes-Benz halts all further investment at German facilities
What people are saying
The executive board has jointly decided to halt all further investments in German sites
We all want to avoid plant closures at all costs
Unfortunately, however, we must now pursue this option in more concrete terms.