Mercedes-Benz is examining partial sales: the future of the traditional factory is in danger!

Mercedes-Benz is examining partial sales: the future of the traditional factory is in danger!

Mercedes-Benz is facing a crucial restructuring that affects the company's oldest plant in Berlin-Marienfelde. The traditional production facility, which has been in operation since 1902, is being examined by Daimler AG for a possible partial sale. This wet-to-change approach comes as part of a comprehensive change towards electromobility [Merkur] reports that the review of the partial sale was confirmed by the general works council at the request of WirtschaftsWoche.

Originally, production in Berlin-Marienfelde was supposed to stop in 2020. Instead, however, the production of electric drive components will continue. The location has since transformed into a so-called “Digital Factory Campus”, which opened in 2022 and focuses on modern production processes and software solutions. This move follows the need to adapt to technological innovations in the automotive sector [MB Passion] adds that the revamped site also serves to attract new partners and create synergies.

Fear and insecurities among employees

The uncertainty surrounding the partial sale has already caused concern among the approximately 1,900 employees. The works council has expressed these concerns and points out that the company is offering high severance payments in order to reduce personnel costs. However, Mercedes-Benz's announcement emphasizes that the partial sale and possible efficiency-enhancing measures should have no impact on employment at the site. Redundancies for operational reasons are excluded until 2035, which should offer employees a certain level of security [Merkur].

The transformation into an electric motor producer requires a gradual reduction in the production of conventional drives, which also affects the employment profiles of employees. From 2026, the group plans to produce high-performance electric motors for the AMG models in Berlin-Marienfelde. The investments in the modernization of the plant amount to a three-digit million amount in order to keep the location attractive until at least 2030 [MB Passion].

The transformation in the automotive industry

The automotive industry is currently undergoing a profound process of change that affects both production and the company's business model. According to a study by Deloitte, companies like Mercedes-Benz must scale back in the areas of combustion engine technology and at the same time expand the area of ​​electromobility. This transformation involves various strategies, including the so-called “harvest” strategy, which involves monetizing existing markets while investing in new technologies [Deloitte] explains that companies are responding to these challenges in different ways.

In automobile production, it is no longer sufficient to measure previous successes solely in terms of sales and profit figures. Rather, the assessment of progress in the transformation depends heavily on the internal assessment of management. While some companies see no need to transform, others have recognized that rapid changes and adaptations in production and drive technologies are essential to remain competitive [Deloitte].

With the strategic partial sale of the Berlin plant, Mercedes-Benz is not only trying to promote the transformation process, but also to secure long-term competitiveness in the global market. Many in the industry also see collaboration with new partners as an opportunity to innovate and increase efficiency [MB Passion].