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.
The CEO said sites outside Germany partly offer both lower costs and longer annual working hours. In his words, this affects where future products and investments go. German plants therefore compete with foreign sites for model allocation, not only for cost. The company has not disclosed which plants are under review, how many extra hours it wants or what savings it targets.
Källenius also called for political reforms. He said high energy and production costs, lengthy approval procedures and growing regulatory burdens hurt competitiveness. He wants Europe to become one of the most attractive places for investment, innovation and industrial production, which he says requires pragmatism and speed.