Car Manufacturers Invest in Eastern Europe: Crisis for Some, Factory Openings for Others

The article reports that Mercedes-Benz and BMW are facing crises similar to Volkswagen, including trade conflicts, Chinese competition, and a missed powertrain transition. Mercedes-Benz is investing 1 billion euros to expand its plant in Kecskemét, Hungary, making it one of its largest global production sites, while demanding German employees work five more hours per week for the same pay. BMW also lowered its profit margin forecast due to a 4.2% drop in sales, driven by a slump in China. Union representatives criticize the strategy of relocating production to Eastern Europe at the expense of German jobs and call for active industrial policy, including better charging infrastructure and local content regulations for foreign competitors.