Mercedes targets €800m in German labour cost savings: report

Mercedes-Benz plans to cut €800m (R14.9-trillion) in labour costs in Germany, business news outlet WirtschaftsWoche reported on Thursday, citing three people familiar with the matter.

According to the report, options under consideration include:

Mercedes-Benz declined to comment on speculation about ongoing discussions.

Management has told workers producing in Germany has become too expensive, calling on them to work more and commit to cost-cutting targets or two German plants could be closed.

Volkswagen is pursuing the most far-reaching overhaul in the company’s history and BMW is also cutting thousands of jobs as Germany’s storied auto sector faces a growing threat from low-cost Chinese competitors while navigating tariffs and EV costs.