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Mercedes-Benz halts all new investment at German facilities
DW.com • • business
Key Points:
- Mercedes-Benz has decided to halt all further investments at its German sites and is considering potential plant closures due to high costs and financial pressures.
- The company cited significantly higher labor and administrative costs in Germany compared to Eastern Europe, making continued investment in German plants financially unviable.
- Mercedes-Benz is facing declining sales and profits, particularly due to weakened demand in China, its largest market, where sales dropped by about 19% in 2025.
- The automaker's heavy investment in electric vehicles has not yet yielded expected returns, as demand in Europe and North America remains slow and competition from cheaper Chinese EVs intensifies.
- Additional financial strain comes from increased US tariffs, which cost Mercedes approximately €1 billion in profit last year.
