CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and can afford the risks. Trading CFDs is high risk and is not suitable for everyone. Refer to our PDS and Target Market Determination. AFSL 513393
Open platformOpen platform

Mercedes-Benz halts German investments as plant closures loom

By Reuters News

By Ilona Wissenbach

FRANKFURT, Nov 12 (Reuters) - Premium automaker Mercedes-Benz MBGn.DE is halting all investments in Germany and considering plant closures to tackle the high cost of car manufacturing in the country, according to a memo to workers seen by Reuters on Thursday.

Management took the decision because it cannot agree with works council and union representatives on labour cost reductions, according to an interview with executive board members shared on the company's intranet.

Mercedes production chief Michael Schiebe said management had "jointly decided to halt all further investments in our German locations", citing high costs and the absence of an agreement over cost cuts.

Mercedes has for months been pushing workers to find cost savings. In September, Schiebe warned staff that two plants could close in Germany if there was no progress on the issue.

This appeared more likely in executives message on Thursday.

"We all want to avoid plant closures at all costs. Unfortunately, however, we must now explore this option in more detail," management board member Britta Seeger said in the memo.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.