German carmaker is reportedly considering measures including longer working hours and changes to bonus payments as it seeks to reduce costs
Berlin: Mercedes-Benz is aiming to cut around €800 million in labour costs in Germany, according to a report by German business publication WirtschaftsWoche, which cited three people familiar with the matter.
The report said the carmaker is considering a number of options, including increasing working hours without additional pay, adjusting holiday and Christmas bonuses, or eliminating certain special payments.
Mercedes-Benz declined to comment on what it described as speculation surrounding ongoing discussions.
According to the report, management has told employees that manufacturing in Germany has become increasingly expensive and has called on workers to support cost-reduction efforts. The report added that two German plants could face closure if cost-saving targets are not achieved.
The reported measures come as Germany’s automotive sector faces growing pressure from lower-cost Chinese competitors while also dealing with tariffs and the substantial investment required for the transition to electric vehicles.
Mercedes is not alone in pursuing cost-cutting measures. Volkswagen is undertaking what it has described as the most extensive restructuring programme in its history, while BMW has also announced plans involving workforce reductions as the industry adapts to changing market conditions.
The report underscores the broader challenges facing Germany’s carmakers as competition intensifies and the shift towards electrification continues to reshape the global automotive industry.
Source: Emirates 24|7