Fierce competition from China and high costs are putting pressure on Germany's car industry. Last week, Mercedes became the third major manufacturer, after Volkswagen and BMW, to lower its full-year forecast.
Negotiations with union representatives to reduce costs are underway but have made no progress, and now Mercedes is taking a tougher line.
The management has jointly decided to stop all further investments in the German plants, says board member Michael Schiebe in an interview.
According to Schiebe, management sees no possibility of reaching an agreement with the unions.
We are now forced to carefully examine which German plants may have to be closed if we do not succeed in achieving a change in the cost structure.
What do you think?