Mercedes ties German investment to labor costs, CEO says
Osnabrück – November 13, 2026 -- Mercedes CEO Ola Källenius has linked the allocation of future products and investments to labor costs and annual working hours. The statement follows an investment freeze in Germany, according to an interview with Neue Osnabrücker Zeitung (noz).
Mercedes is pressing for longer working hours without wage compensation, noz reported. If no agreement is reached with employee representatives, the company would build new models increasingly abroad. In Germany, it is examining plant closures.
Källenius said the company is working on all major cost blocks: energy, logistics, structures, processes and labor costs. Of the five, he singled out only labor costs as a lever that companies and employees can influence directly and jointly. Working longer without extra pay lowers the labor cost per hour worked, and that is the mechanism the company is asking for.