Mercedes threatens to close two plants in Germany

The company wants to cut up to €800 million in labor costs, according to WirtschaftsWoche. This includes unpaid extension of the workweek from 35 to 40 hours, as well as reduction or cancellation of vacation, Christmas bonuses, and special payments. If savings are not achieved, management is ready to close a passenger car assembly plant and a transmission components facility. Production in Germany has been deemed too expensive. The company declined to comment on these negotiations.