Mercedes Set to Cut Jobs in China as Local Competition Heats Up
Mercedes’ decision shows the struggles facing foreign carmakers in China.
Photographer: Johannes Neudecker/dpa/picture alliance/Getty Images
Mercedes-Benz Group AG and its subsidiaries are planning to cut up to 15% of the automaker’s workforce in China, mainly within its financing and sales units, as the German manufacturer faces intensifying competition in the world’s largest car market, according to two people familiar with the matter.
Mercedes-Benz Automobile Finance Co. and Beijing Mercedes-Benz Sales Service Co. are set to bear the brunt of the job cuts, said the people, who asked not to be identified because they’re not authorized to speak publicly. The units are struggling to compete with Chinese institutions, including state-owned banks, that can offer more attractive car loans to buyers, one of the people said.