Mercedes CEO Ola Källenius is defending the company’s cost cutting. High energy and production costs, lengthy permits, and increasing regulatory burdens impaired competitiveness, the manager told the Neue Osnabrücker Zeitung (Friday edition). The objective is to make Europe one of the world’s most attractive places for investment, innovation, and industrial production. This requires pragmatism and speed. Looking at manufacturing profitability in Germany, Källenius said they are working on all essential cost areas, including energy, logistics, structures, processes, and labor costs. Labor costs are a relevant lever that companies and employees could influence immediately together. Locations outside Germany offer both lower costs and higher working hours. This also affects the allocation of future products and investments. The CEO considers making the German location more productive and thus more competitive a major concern. Mercedes imposed an investment halt for Germany on Thursday. The company urges for an extension of working hours without corresponding wage increases. The threat is that if no agreement with the employee representatives is reached, new models will be produced more often abroad. In Germany, the closure of plants is being considered.
Mixed
