Mercedes warns two German plants could close

Mercedes-Benz has put two of its German factories on notice. On Tuesday the company said building cars in Germany does not compete on cost with work it does elsewhere, and that pay is the main reason.

Production chief Michael Schiebe had already said so on the floor. On Monday, at a works meeting in Sindelfingen, a factory that has been building cars for 111 years, he told staff that agreed savings are what would keep every German site open. Without them, Mercedes will shut one assembly plant and one powertrain plant. The company released parts of the speech. Asked by Reuters what would have to change, it said Germany has to become more productive.

The general works council refused. A spokesperson told Reuters that threatening closures is no way to decide the future of the factories. If the board treats this as concessions or closures, the spokesperson said, the answer is “not on our watch.”

IG Metall had people out across Germany at the same time. Reuters reported tens of thousands of car workers at protests against layoffs in the industry.