Mercedes-Benz warns it could close two German plants
Mercedes-Benz has warned that two of its plants in Germany could be shut down if production cost cuts cannot be achieved. The situation reflects wider difficulties across Germany's auto industry.
Mercedes-Benz has warned that it may close two plants in Germany if it fails to achieve significant reductions in production costs. German media reported the news, citing information provided by the automaker.
Competitiveness concerns
According to Mercedes, production in Germany is no longer sufficiently competitive on an international scale, primarily due to high labor costs in the country. The company says it wants to keep all its plants and jobs in Germany, but this depends on achieving substantial cost reductions and improved productivity.
Potential closures
Should an agreement on the necessary changes not be reached, Mercedes is considering closing one car assembly plant and one powertrain production facility. The company has not yet named which specific plants could be affected.
Wider industry context
Mercedes' warning is not an isolated case. Germany's automotive industry has recently faced multiple challenges simultaneously — growing competition from Chinese manufacturers, high production costs, and pressure from US tariffs. Other major German carmakers are experiencing similar difficulties: the Volkswagen group has already announced plans to eliminate a total of 100,000 jobs by the end of 2030.
