Michael Schiebe, the production director for Mercedes-Benz, defended the doubling of production capacity at the company’s Hungarian facility. Speaking to the “Handelsblatt”, he stated that the expansion in Kecskemét helps the company secure jobs within Germany by lowering overall operating costs.
Kecskemét, located southeast of Budapest, now hosts Mercedes’ largest European plant. This expansion comes at a time when the corporate group is simultaneously implementing job cuts and tightening its austerity program in its home country. Management is pushing for employees in Germany to increase their output without corresponding pay increases. Schiebe pointed to the Hungarian operation, noting that employees there provide a higher number of working hours compared to those in Germany, and that absenteeism rates are significantly lower.
The trade union IG Metall has announced plans for resistance to these measures. Schiebe acknowledged the severity of the situation for the employees, stating he understands how serious their commitment is when the company asks them to sacrifice their personal time to ensure the business’s security. However, he maintained that Mercedes must become more competitive at the German location.
Should negotiations fail, Schiebe noted that, in an extremely harsh scenario, plant closures in Germany could potentially occur. Nevertheless, he emphasized, “To be very clear: We want to prevent plant closures in Germany and secure employment at the German site.”
