Mercedes Confronts the Future of Its Employees

The President of the Mercedes-Benz Group discussed the company’s employees and their future in a 100% electric world.

Ola Källenius, the CEO of Mercedes-Benz, addressed the historic strike currently affecting American manufacturers during an interview with Bloomberg Television in New York. Since September 15, United Auto Workers (UAW) has initiated an unlimited strike at three plants of General Motors, Ford, and Stellantis, one in each group. The affected sites are assembly factories in Wayne, Michigan for Ford, Wentzville, Missouri for General Motors, and Toledo, Ohio for Stellantis-Chrysler. These three sites employ nearly 13,000 unionized workers out of the 150,000 represented by the powerful union, and produce more than 20,000 vehicles per week.

No social impact for Mercedes

Källenius stated that he does not expect a “major impact” on Mercedes’ supply chain due to this strike. He added that the German automaker has always monitored the economy to make necessary adjustments for the well-being of its employees. “We try to ensure, while remaining competitive, that we are an attractive employer,” he said. “Whatever cost pressures we face, they must be offset by virtuous productivity.”

Fewer workers for electric vehicles

The opportunity for the German CEO to discuss the future of his employees, as the automotive world shifts at a rapid pace towards electric vehicle production. Are automakers able to guarantee that workers will keep their jobs? Källenius said that the number of Mercedes workers needed for vehicle assembly would remain approximately the same. However, he confirmed that the manufacturing of electric powertrains requires less labor.

“We will leverage demographics during this transition period which we estimate to be about 10 years,” he explained. We are making sure we can position ourselves reasonably.”

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