The CEO of Mercedes would reduce labor costs in Germany, but does not want to sink to the Hungarian level.

Ola Källenius, CEO of Mercedes-Benz, emphasizes the need to reduce labor costs in Germany to enhance competitiveness, while avoiding a drop to Hungarian levels. He argues that significant changes are necessary to maintain Germany's industrial standing, warning that without action, industrial activity could decline significantly in the next decade. Källenius compares international cost levels, noting Germany's costs are at 100, while Hungary is around 30 and Romania 20. He suggests that aligning German costs closer to the U.S. level of 80 is a realistic goal. The CEO is open to proposals allowing temporary deviations from collective agreements in exchange for investments in future product development and job guarantees. Mercedes remains committed to domestic production despite recent sales and profit declines, implementing cost-cutting measures and suggesting increased working hours at the same pay, which has sparked employee protests.