By Steven Symes 
It’s no secret automakers are trying to lean down as economic forecasts bode a tough 2025, and among them is Mercedes-Benz. The company which claims to be the inventor of the automobile is offering big severance packages to try tempting employees to leave as the financial seas get choppier.
President Trump has a plan to encourage consumers to buy American cars.
When we say Mercedes-Benz is waving a lot of money in people’s faces, we mean over half a million dollars each. According to a report from DP, employees working at the administrative level are being offered over $500,000 each to quit the company rather their ride out their guaranteed employment until the end of 2034.
The employees getting these tempting offers have reportedly been at Mercedes-Benz for a long time. In other words, with their seniority they’ve become too expensive to keep on board.
But government protections keep the automaker from just firing these people. Some might argue that is in part the dysfunction within Mercedes and other German car companies.
One thing DP doesn’t have a fix on through its sources in Mercedes-Benz is just how many employees the company is hoping to shed with these generous severance packages. We assume it’s a fair number, but that’s just an assumption.
Some claim the number is in the thousands, which if true demonstrates the automaker is looking to shed a lot of weight financially, even if in the short run it has to pay out more for the long run benefit.
The global automotive market has been shifting significantly. In Europe, Chinese automakers have shaken things up as legacy companies have struggled to compete on price and even features.
While the American market has been protected against such an incursion, the much talked about tariff war could negatively impact Mercedes-Benz as it tries adjusting to the economic reality.
That, combined with other geopolitical threats, could be a large part of why the automaker reportedly wants to shed about 5 billion euros in costs by the end of 2027. Its competitors are also trying to slim down and save on cash, too.
Image via Mercedes-Benz