Despite a slump in profits and tightened savings efforts, the car manufacturer Mercedes-Benz pays its employees a decent premium in Germany. The approximately 91,000 women and men entitled to claim are expected to receive a participation in results of up to 5,220 euros, as a spokesman in Stuttgart announced. The sum was justified with the “solid result of the 2024 financial year”. However, the profit sharing is significantly lower than in the previous year. In 2023 the bonus was still up to 7,300 euros. The spokesman said: “The participation of results is a voluntary performance and thanks to the company for the support of employees in this extremely challenging time.” The car manufacturer with around 115,000 employees in Germany had had a significant drop in profits last year. The background was primarily the poorly running shops in China. In 2024, sales fell by 4 percent to 145.6 billion euros. The result from interest and taxes slipped by almost a third to 13.6 billion euros. The sales had also decreased. In order to become more profitable again, Mercedes-Benz had announced a savings program to which it was now agreed after tough discussions with the general works council. At the annual press conference, the CEO Ola Källenius together with CFO Harald Wilhelm had already announced that the global production structures were tightened, among other things. Mercedes reduces the global production capacity of currently 2.5 million cars to two to 2.2 million in 2027. Finding program is intended for the “Next Level Performance” package, which has already been presented internally at the end of 2024, the company wants to save five billion euros by 2027. Part of the sum should now be achieved by the agreement with the general works council. A severance payment program for employees in the administration is planned. Production is not affected. There are no operational terminations, the group spokesman emphasized. The severance payment program starts at the beginning of April and ends on March 31, 2026. The spokesman did not provide any information on the number of employees to be dismantled in Germany. There is a half crediting of the tariff increases in the current tariff degree of the metal and electrical industry. The increases of 2.0 percent on April 1st and 3.1 percent on April 1, 2026 will be deducted from the over -tariff allowance, as the company announced. According to the company, in order to obtain more flexibility in production in German works such as in Sindelfingen, Bremen, Rastatt or in Stuttgart-Untertürkheim. Temporary workers may be used up to 48 months in the future. So far, the maximum transfer period was a maximum of 36 months. The quota of temporary workers may be 10 percent in the future. The topic of temporary work has been controversial in the past, and work closings in Germany are not intended, as the board said on the occasion of the balance sheet press conference a few days ago. The profitability of the car division, i.e. the adjusted sales return, is to come back to the double-digit range. According to the statement by CFO Wilhelm on the occasion of the balance sheet press conference, the ambition is to reach them in 2027. In 2024 it was 8.1 percent. In the previous year it had been 12.6 percent. It has now been extended by five years and runs by the end of 2034, as the company continued. The agreement applies to around 91,000 people. “With the savings and flexibility measures, the Mercedes-Benz Team makes an important contribution to strengthening competitiveness- and thus also to secure employment here in Germany.” The participation in results is based on an overall company agreement, as the speaker continued. On this basis, it will be paid again for the current year in 2026. How it will go on is open. “According to this, there is currently no agreement for a participation in results.” The company hopes that more and updated models are hoping for in paragraph by 2027. This year, the new CLA, which will in future be the entry -level model of the product range. Mercedes boss Källenius spoke of the largest technology and product offensive in the history of the company. In 2024, Mercedes sold a little more than 1.98 million cars. In the previous year there were still over two million. In the current year, the car manufacturer expects even stronger headwind and less result. Marge, which was adjusted for special effects, before interest and taxes in the car business should only be 6 to 8 percent of sales in 2025. This year, the corporate turnover is likely to remain below the level of the previous year. The Stuttgarters also expect a slight decline in the sales of cars. The group result before interest and taxes is likely to fall significantly.
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