German Auto Crisis: Mercedes Cuts Perks as VW Weighs Massive Job Losses

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Source: Dukascopy Bank SA
Mercedes is cutting costs at the expense of its German employees. The automaker is postponing a July bonus payment to next year and wants to increase the 35-hour workweek without raising pay. Management blames uncompetitive labor costs and falling profits, which dropped by 17.2% in Q1. Meanwhile, Volkswagen is facing an even bigger crisis. VW plans to cut 100,000 jobs worldwide and may close four German plants (Hanover, Zwickau, Emden, Neckarsulm) as soon as current models are phased out.

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