Mercedes-Benz to freeze all investments in production in Germany

German automaker Mercedes-Benz has decided to freeze all further investment in its production facilities within Germany, reports the DPA news agency, citing a statement made by Jörg Burzer, a member of the board of management responsible for production, during an internal company interview.

In September, Burzer stated that two Mercedes-Benz plants located in Germany were at risk of closure due to high costs.

This decision was made against the backdrop of a failure to reach a compromise in negotiations between the automaker’s management and the works council, which represents the employees. The company’s production director also noted that, given the current cost structure, investing in production within Germany is not feasible.

In June, Handelsblatt reported that Mercedes-Benz Group AG would withhold annual bonuses from its 90,000 employees in Germany. Management also plans to increase the length of the workweek without providing additional pay. Handelsblatt estimates that the savings could exceed 10 million euros.

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