Overview
- Mercedes production chief Michael Schiebe told staff on Monday that the company could close one German assembly plant and one powertrain plant if agreed cost cuts are not reached.
- Management is pressing the works council for measures that include raising the 35-hour weekly work schedule toward 38 hours while keeping pay unchanged.
- IG Metall rejected any rollback of the 35-hour week and organised large protests, noting the 35-hour rule is written into the sector-wide collective agreement and carries strong symbolic weight for workers.
- While Mercedes has not named specific sites, Bremen (about 10,500 employees) and Hamburg (about 1,900 employees) match the types of assembly and powertrain locations the company says could be affected.
- Mercedes cites a roughly 70% cost advantage at its Kecskemét, Hungary plant and points to weak China demand and higher US tariffs, a mix that could reshape local jobs and drive tougher bargaining in the upcoming tariff round.