Germany too risky to warrant further investment

By German firms. In Germany.

“Wir sind doch nicht blöd!” We ain’t stupid.

Mercedes-Benz halts all further investment at German facilities – The announcement comes as the luxury German automaker faces increasing pressure from the works council and trade unions.

Mercedes-Benz announced on Thursday that it was halting all further investment at its German sites for the time being.

“The executive board has jointly decided to halt all further investments in German sites,” Mercedes board member Michael Schiebe said in a memo on the company’s intranet that was seen by the AFP news agency.

The company is also weighing plant closures, the memo added.

Luxury has its price

And it’s too high, in Germany.

Mercedes-Benz production in Germany is not competitive by international standards, in particular ​due to high labour costs, the premium automaker said on ‌Tuesday, after a top executive warned workers that two plants could close.

The company wants to maintain plants and employment in Germany, it said in an emailed ​statement to Reuters. “But to do that, we need framework conditions ​that boost productivity in Germany,” it added.

When German cars are no longer German cars…

Nobody wants them.

Tesla is lapping German automakers in the global EV race – even in Germany.

Germany’s automakers announced bold plans the last several years to shift to electric cars and challenge Tesla Inc.’s dominance. Instead, they’re only falling further behind.

Tesla delivered 889,015 cars in the first half of this year, more electric vehicles than Volkswagen AG, BMW AG, Mercedes-Benz Group AG and Porsche AG sold combined.