Mercedes wants out of Germany. First the nuclear plants, now the car factories.

Mercedes-Benz has stopped all further investment in its German factories and is examining plant closures after four months of failed negotiations with unions. Management wanted workers to go from a 35-hour week to 40 hours for the same pay. No deal. Mercedes says production labor costs in Germany can run five times higher than Eastern Europe. At its Hungarian plant, production labor costs are 75% lower.

Germany has already shut down its last nuclear plants. Now its car industry is struggling against high costs and Chinese competition. BMW’s China deliveries fell 24.8% in Q3. The company is getting squeezed at home and losing ground in the market that helped drive its growth.

Germany built the trap. China sprang it.
Mercedes says a production hour at home costs 5x Eastern Europe, and new models go abroad without a union dela.
China did the rest: BMW's deliveries fell 24.8% in Q3, and only 6.5% of what it sells is fully electric. pic.twitter.com/wHT2HPYM9A
— Welkin Wire (@WelkinWire) November 13, 2026