Mercedes-Benz has warned employees: if production costs in Germany cannot be reduced, one assembly plant and one engine plant could be at risk. The company has not yet named the specific sites. 

One option for savings is to increase the work week from 35 to 40 hours without a proportional salary increase. Mercedes representatives link this to the need to increase the productivity of German enterprises. The IG Metall trade union opposes such a change in conditions.

Against this background, the Mercedes plant in Kecskemét, Hungary, is particularly indicative. After investments of approximately 1 billion euros, its area was doubled, and production capacity reached 400,000 cars per year. The electric C-Class is already being produced there, and the plant is designed for the production of cars with internal combustion engines, hybrid, and fully electric powertrains.

Mercedes indicates that German sites operate under high production costs. According to Eurostat data cited by AutoNext, an hour of production labor in Germany in 2025 cost approximately 49.5 euros, compared to 15.6 in Hungary.

At the same time, the company officially stated earlier that it does not plan to close plants in Germany and intends to adapt capacities to demand. Now, the issue is not only the volume of production but also the cost of producing one car.