Six years after The World in 2020 from the nineties , said it would happen…..
Mercedes suspends all future investment in Germany
Carmaker to examine where it can ‘still afford’ to operate as sales and profits slump
Mercedes-Benz has suspended all future investment in Germany, warning it may need to shut plants and relocate jobs.
The carmaker has suffered from shrinking sales and profits in recent years, triggering a wave of cost-cutting which has culminated in a decision to stop investing in its domestic plants entirely.
Michael Schiebe, the production director, told employees: “The executive board has jointly decided to halt all further investments in German sites.”
Britta Seeger, the company’s workforce chief, said bosses would now “examine specifically and in detail which locations we can still afford in Germany”.
It comes amid a showdown between management and unions over the company’s cost-cutting plans.
The car giant, which is based in Stuttgart, has for months been pushing a plan under which its staff would work longer hours for the same pay.
The trade union, IG Metall, has pushed back, and Ms Seeger said “no solution is currently in sight”.
“If we don’t reach an agreement, we will take very tough steps,” she said.
Mercedes, like its fellow German giants Volkswagen (VW) and BMW, is battling a slump in sales in China, which was once a major source of growth.
Chinese sales of Mercedes models dropped 8pc in the third quarter compared to a year earlier. Drivers in China have either closed their wallets or are buying cheaper, domestically made car
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Six years after The World in 2020 from the nineties , said it would happen….....[more]