Mercedes-Benz Group AG will begin formal negotiations with German labor unions to implement new cost-cutting and competitiveness measures. The automaker faces mounting pressure from new U.S. tariffs and a sustained decline in Chinese sales. These talks will proceed alongside an existing labor agreement that prohibits compulsory layoffs until 2034.
Human resources chief Britta Seeger confirmed the negotiations, citing the need to maintain industrial competitiveness in Germany. The company currently manages its workforce through natural attrition and voluntary departures. Mercedes-Benz is also expanding its use of artificial intelligence to improve productivity and lower operational expenses.