Tuesday, 02 January 2024 12:17 GMT

Mercedes-Benz Set to Relocate Van Production to Poland


(MENAFN) Mercedes-Benz is set to relocate its production from Germany to Poland, citing prohibitively high labor expenses in its home country, according to a Polish broadcaster on Wednesday.

The German automaker plans to shut down its Ludwigsfelde facility near Berlin by late 2029. The plant currently employs over 2,200 workers and manufactures approximately 60,000 specialized Sprinter vans and electric vehicles each year.

Production of the e-Sprinter, the electric variant of its popular delivery van, will move to Poland, where labor costs are reportedly one-fifth of those in Germany, the broadcaster reported, citing multiple sources.

Mercedes-Benz will construct the new factory in Jawor, southwestern Poland, expanding its existing operations there, which have included producing engines and hybrid car batteries since 2019.

The move has ignited tensions among German trade unions and local officials, with anticipated protests in Ludwigsfelde, reflecting concerns over the economic impact of the planned closure.

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