Mercedes-Benz Halts Further German Investment as It Reviews Plant Closures

Mercedes-Benz Group’s executive board decided Thursday to halt further investment at German sites and review possible plant closures, tying the move to stalled labor-cost talks.

Production chief Michael Schiebe said the board had chosen to stop additional investment at the company’s German locations. Board member Britta Seeger said Mercedes-Benz wants to avoid closures but will examine that possibility in more detail.

The announcement identified no affected plants, and no shutdown was announced. The company has not specified which projects are affected or how long the investment halt will last. No timetable for the closure review was announced.

Mercedes-Benz Cars’ adjusted return on sales was 2.5% in the third quarter of 2026, down from 4.8% a year earlier. On Oct. 27, the company lowered its 2026 forecast for the measure to 2% to 3%, from 3% to 5%, citing a more challenging market in China and higher expected fourth-quarter costs. The October forecast cut came before the investment decision.