German car giant Mercedes-Benz is planning to move some of its car production from Berlin to Poland. The reason for this decision is the growing competition from China and high operating costs in Germany, particularly significantly higher labor costs. This is reported by TVP World.
According to the plans, production at the plant in Ludwigsfelde, near Berlin, will be stopped entirely by the end of 2029. This enterprise, which has been in operation for over 30 years and is significant to the region, currently employs more than 2,200 people.
The plant produces around 60,000 specialized Sprinter vans and their electric e-Sprinter versions every year. The e-Sprinter model will be made in Poland.
This decision has caused considerable discontent among German trade unions. Tobias Kunzmann, a representative of Germany’s largest trade union, IG Metall, said the decision was unacceptable and announced the start of protests.
According to reports, labor costs in Germany are five times higher than in Poland. In addition, Poland is the world’s second-largest producer of batteries for electric vehicles, second only to China.
The new plant will be built in the city of Jawor in southwestern Poland, where Mercedes-Benz has been producing engines and batteries for hybrid cars since 2019.
Mercedes plans to invest PLN 1.528 billion (about €360 million) in the project and create at least 300 new jobs by 2027, 30 of which will be for specialists with higher education.