Mercedes-Benz said Thursday it is stopping further investment at its German plants for now and is examining possible closures, according to Deutsche Welle¹.

Board member Michael Schiebe said in an intranet memo seen by AFP that "The executive board has jointly decided to halt all further investments in German sites," DW reported¹.

The memo also said the company is weighing plant closures, DW reported¹. The report said the move comes as the automaker faces pressure from its works council and the IG Metall union¹.

Board member Britta Seeger said in an intranet interview that Mercedes must examine in detail which German sites it can still afford to maintain, DW reported¹. She said the company wants to avoid closures but must now pursue that option more concretely¹.

Schiebe, the chief production officer, said current cost structures mean the company cannot invest in Germany, according to DW¹. The outlet said German labor costs are sometimes five times higher than at plants in Eastern Europe, with lower administrative costs there as well¹.

Schiebe had recently said two plants in Germany would have to close unless costs were reduced, DW reported¹.

DW said Mercedes has faced weaker sales and profits, with demand in China — historically about a third of passenger-car sales — down sharply, including an about 19 percent drop in Chinese sales in 2025¹. It said EV demand in Europe and North America has been slower than many manufacturers expected and that cheaper Chinese EVs have added competition¹.

U.S. tariffs cost Mercedes about 1 billion euros ($1.1 billion) in profit last year, the company has said, according to DW¹. The outlet said Volkswagen, BMW, Audi, Porsche and other European makers have faced similar pressure¹.

Reuters also reported Thursday on the German investment halt and possible plant closures; its full article was not available for this filing². What plants might close, and whether talks with IG Metall produce a cost deal, was not settled in the accounts reviewed^1,2.