German automobile manufacturer Mercedes-Benz announced yesterday, Thursday, that it intends to reduce costs, in light of the decline in business.
The German News Agency quoted a Mercedes-Benz spokeswoman as saying: “We will reduce our costs by billions of euros annually in the coming years.” She refused to disclose whether Mercedes-Benz was considering laying off employees, or specifying how costs would be reduced.
The German automobile industry has faced serious problems recently, amid struggles in transitioning to electric cars and intense competition in the Chinese market.
Volkswagen, the largest car brand in Europe, threatened to potentially close its factories and lay off large numbers of workers in Germany.
Protests
Thousands of protesting Volkswagen workers, from various parts of Germany, descended on Thursday to the company’s headquarters, to protest against threats regarding mass layoffs of workers at the giant German car company, where worker leaders met with the company’s management to conduct negotiations.
The German Metal Workers Union (IG Metal) said that more than 6,000 workers joined the protests from all 10 Volkswagen factories in Germany, and demonstrated in front of the gates of the square in Wolfsburg, where joint negotiations are taking place.
The protesters raised slogans including: “The future instead of cutting salaries” and “All factories must remain.” With potential strikes approaching at Volkswagen in the coming weeks, workers chanted the phrase “We are ready!”
For her part, Volkswagen Works Council President Daniela Cavallo said, “This is just a prelude to what will happen from December onwards if the company does not take our concrete proposals for solutions seriously.”
Before the talks began in Wolfsburg yesterday, Thursday, Torsten Gröger, the regional director of the Metal Workers Union, said: “We expect Volkswagen to begin this path with us today for a constructive solution, and to enter a negotiation process now.”
Groger blamed the administration for wasting time in the talks so far.
