Mercedes Warns Two German Plants Could Close Unless Costs Drop

• Mercedes warned one assembly plant and one powertrain plant in Germany could close if labor costs do not fall.
• The company named no specific sites and gave no timetable for any potential closures.
• Mercedes says costs at its Kecskemét, Hungary plant run 70 percent lower than its German sites.

Mercedes-Benz told employees in Sindelfingen this week that keeping every German plant open is not guaranteed. Production chief Michael Schiebe said one assembly plant and one powertrain plant could shut down if labor costs do not come down.