Mercedes plans to move jobs to Poland due to high labor costs in Germany

Mercedes-Benz plans to move its production from Germany to Poland due to the high labor costs at home, Polish broadcaster TVP World reported on Wednesday.

The German car giant plans to cease operation at its Ludwigsfelde plant near Berlin by late 2029 where it employs more than 2,200 people and produces around 60,000 specialized Sprinter van variants and electric vehicles annually.

It will relocate production of the e-Sprinter, the electric version of its popular delivery van, to Poland as labor costs in Germany are five times higher, TVP World said, citing reports.

The new plant will be built in Jawor, southwestern Poland, where Mercedes has already been producing engines and batteries for hybrid cars since 2019.

The decision reportedly sparked controversy among German trade unionists and local authorities, with expected protests in the town of Ludwigsfelde.