The Ludwigsfelde factory of Mercedes, a cornerstone of Brandenburg’s industry for more than 30 years, produces around 60,000 specialised versions of the Sprinter annually, including electric vehicles. It currently employs over 2,200 people. An agreement between management and the works council guarantees employment until December 2029, but the plant’s future beyond that date remains uncertain.
Mercedes’ plans have drawn strong criticism from unions. Tobias Kunzmann of IG Metall described the decision as “unacceptable” and announced protests, citing the threat to thousands of skilled jobs and the region’s industrial tradition.
According to the Brandenburg state government, the relocation reflects rising production costs in Germany and intensifying competition from China. Labour costs in Germany are estimated to be up to five times higher than in Poland, which has emerged as the world’s second-largest producer of electric vehicle batteries after China.
Investment in Jawor
Mercedes will invest €360 million in expanding its plant in Jawor, where it has produced engines and hybrid batteries since 2019. By 2027, the company plans to create 300 new jobs, including 30 for highly qualified specialists.
The move makes Jawor a key site in Mercedes’ transition to electric commercial vehicles, as the plant becomes the new hub for e-Sprinter production.
Mixed reactions in Germany and Poland
While the relocation offers Poland an opportunity to strengthen its standing in Europe’s automotive supply chain, it has caused alarm in Germany. The Brandenburg government insists Ludwigsfelde still has modern facilities and a highly qualified workforce, and has pledged to work towards maintaining some production of combustion vehicles at the site.
For Germany, however, the decision is a sobering signal of rising cost pressures and the need for industrial restructuring.
