Business & Money
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Mercedes-Benz workers protest possible factory move to US

Published: 1 Dec 09 10:59 CET
Online: http://www.thelocal.de/money/20091201-23641.html

Metalworkers’ union IG Metall on Tuesday called for workers at the Mercedes-Benz factory in Sindelfingen to protest against the company’s possible plans to move production of its luxury C-Class vehicle to the US by 2014.

Daimler AG, which owns Mercedes-Benz, will likely decide on the move on Tuesday, and the union fears that it could mean the end of more than 3,000 jobs at the plant in Baden-Württemberg.

“The production of the C-Class is of central importance for the workers at Sindelfingen,” works’ council head Erich Klemm said on Monday.

At the protest on Tuesday he threatened to “turn the lights off” at the factory if the factory change moves forward.

Several thousand workers were on hand at the country’s largest car factory for the protest, including many from carmaker Porsche, auto supplier Bosch, and other businesses that would be affected by the move.

A factory in Tuscaloosa, Alabama is said to be in the Daimler’s sights for further C-Class production due to a favourable exchange rate and better sales market. The company currently build four out of five of its vehicles in Western Europe, but sells only 60 percent in the region.

Some 20,000 people work at the Sindelfingen factory, 4,500 of whom specialise in C-Class production.

DDP/DPA/The Local (news@thelocal.de)

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01:09 December 2, 2009 by kschwaeger
First of all since building a Mercedes in the USA sales for the M,GL and R Class have been very successful until the economy bottomed out. Everyone across the Globe has been affected by this. You have to consider it this way. You build the body for the C-Class in Germany, ship it to South Africa for Assembly and then to the USA for sales. How much sense does that make. It doesn't take a Rocket Scientist to figure out that you could save the company millions each year by building them in the USA and selling them in the USA instead of the way the USA cars are being handle in Germany. Come on who wants to drive a Mercedes that has been from Germany to South Africa then to the USA. Not to mention the major factor is cost savings to the company in general. Unless cost can be cut somewhere in the Daimler AG group then Daimler could be in the same situation the Big 3 are in.
02:28 December 2, 2009 by janreg58
That's a good point kschwaeger, but the point that you all are missing is JOBS! 4,500 work on the C-Class. The united states has sent just about all it's factory jobs overseas, turning towns and cities like Detroit into ghosts towns or crime havens. Industry is what made and kept America going. Ever since we started sending work to other countries, our country started to fail. Trade is good to a point, but we need to learn when to stop. Germans like Americans need their jobs.
01:12 December 3, 2009 by kschwaeger
Yes they do need their jobs just like Americans but the big picture is by making this move you are saving thousands of dollars to Daimler AG. Jobs have also been lost here at the Mercedes Plant in Alabama last year and this year. At least in Germany those on reduced work hours were still getting the majority of their salary. Between the Union and the German Government they only lost a small amount of income compared to those at the Alabama facitity whos hours have been cut since last September. The difference is the people in Alabama don't have the Government and Union to help compensate for the lost hours of production. The people in Alabama don't have the extra compensation like in Germany so people in Alabama just suck it up and hope things will be better in the future. Looks like better days are in the future for Alabama and hopoefully those in Germany wil see better days also. At least the Euro is strong once again. That's more than I can say for the US dollar right now.
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