Mercedes-Benz has decided to halt all further investment at its German sites, according to an internal company interview reported by Reuters and Deutsche Welle, as cost-cutting talks continue.
Michael Schiebe, Mercedes-Benz's production board member, said the executive board had chosen to “halt all further investments” at German locations, Deutsche Welle reported. Personnel board member Britta Seeger said the company was assessing which sites it could afford to maintain and wanted to avoid closures. The reports named no plant with an approved shutdown.
Management is negotiating with the works council and IG Metall. Tagesschau/SWR, citing internal company material, reported that options under discussion included increasing the workweek from 35 hours to 40 without extra pay, along with reductions to bonuses and holiday or Christmas payments. The reports describe these as discussion items, not settled terms.
The company put German production labor costs at up to five times the level at its Eastern European sites, Deutsche Welle and tagesschau/SWR reported. Reuters said Schiebe raised the possibility of two German plant closures in September if the company fell short on cost reductions.
Mercedes-Benz Cars sold 407,232 vehicles in the third quarter of 2026, down 8% from 441,453 a year earlier, according to the company's results. Its adjusted return on sales fell to 2.5% from 4.8%. Mercedes-Benz cited difficult market conditions and intense competition in China.
The company said it intensified productivity measures from June 2026, with German sites a focus. Separately, it reported fixed costs about 25% below 2019 levels. Mercedes-Benz said it would offer a voluntary severance program again for indirect roles in Germany starting in December 2026.
