German automotive giant Mercedes-Benz has acknowledged the possibility of closing two of its plants in Germany if the company fails to achieve cost reductions and an increase in working hours. Belta reports from Die Welt newspaper.

Production manager of Mercedes-Benz Michael Shibe emphasized at a meeting at the Zündelheim plant that significant cost cuts are necessary to preserve all enterprises. "If we cannot succeed in this, we will have to close the German assembly plant and the German power unit plant," he said. Thus, the company officially confirmed for the first time previous media reports about the possible closure of German factories.

Mercedes-Benz management had earlier in June stated the need to increase productivity in Germany. To reduce costs, management proposed increasing working time without raising wages, however the production council opposed this. The issue of working week length became a separate point of contention. As Die Welt writes citing Handelsblatt, Mercedes-Benz management demands the abolition of the 35-hour workweek and its extension to 38 hours. The trade union IG Metall opposes such a change.