The investment freeze comes as Mercedes-Benz faces weakening profitability and falling sales in China. (EPA Images pic)FRANKFURT: Automaker Mercedes-Benz has halted further investment in its German sites and is examining possible plant closures amid stalled negotiations with employee representatives over labour costs, German business daily Handelsblatt reported.
The decision was outlined in an interview with production chief Michael Schiebe and labour director Britta Seeger published on the company's intranet Thursday, according to the newspaper.
Schiebe said the board jointly decided to suspend further investment because current cost structures prevented the company from investing in Germany, and intensive discussions had failed to produce a path toward agreement.
