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Mercedes-Benz Could Shut Down a German Factory—And Hungary May Be the Winner

Mercedes-Benz is reportedly putting increasing pressure on its German production operations as the automaker looks for ways to reduce costs and improve factory efficiency. According to a report from German business weekly WirtschaftsWoche, company management has allegedly warned employee representatives that a German factory could eventually become unnecessary if labor costs cannot be significantly reduced.

The reported warning comes amid increasingly difficult negotiations between Mercedes-Benz management and Germany’s powerful works councils. At the center of the dispute are labor costs, working hours, employee benefits and the competitiveness of Mercedes’ German manufacturing operations.

The stakes are particularly high because Mercedes-Benz has substantial production capacity elsewhere in Europe, including its factory in Kecskemét, Hungary, where production costs are considerably lower than in Germany.

Mercedes-Benz Reportedly Threatens New Eastern European Factory

According to WirtschaftsWoche, citing several sources within Mercedes-Benz, a member of the company’s management board allegedly told workers’ representatives that the company could build a new factory in Eastern Europe if German labor costs are not reduced substantially.

Under that scenario, one of Mercedes-Benz’s existing German production facilities could eventually become unnecessary.

There has been no official decision to close a German factory, and it remains unclear which location could potentially be affected. Neither Mercedes-Benz management nor its supervisory board has reportedly made a final decision.

Mercedes-Benz has also declined to comment on the specific allegations, saying that it generally does not comment on ongoing negotiations with employee representatives.

Nevertheless, the reported warning highlights a broader issue facing Germany’s automotive industry: whether manufacturing vehicles in the country remains economically competitive compared with lower-cost production locations elsewhere in Europe.

German Mercedes Workers Cost More Than Three Times as Much Per Hour

One of the most striking elements of the dispute is the difference in hourly labor costs between Mercedes-Benz’s Hungarian and German operations.

Mercedes-Benz’s Kecskemét plant reportedly has an hourly wage of around €15.60, compared with approximately €49.50 for workers in Germany, according to the figures cited in the source material.

That does not mean the total cost of manufacturing a vehicle is simply 3.2 times higher in Germany. Factory economics also depend on productivity, automation, energy prices, logistics, infrastructure, taxes, supply chains and the complexity of the vehicles being produced.

Mercedes-Benz itself has reportedly said that so-called factory costs in Hungary are around 70 percent lower than in Germany.

Those factory costs include more than employee wages. They can encompass labor, energy, infrastructure, logistics and maintenance, making the difference particularly important when an automaker is deciding where to allocate future production investments.

Kecskemét Could Become Increasingly Important to Mercedes-Benz

Mercedes-Benz already operates one of its most important European production facilities in Kecskemét, Hungary.

The plant has recently undergone a major expansion that reportedly doubled its potential production capacity to approximately 400,000 vehicles annually. More than 5,000 employees work at the facility.

The Kecskemét factory currently produces models including the Mercedes-Benz GLB and the electric C-Class. A smaller version of the G-Class is also expected to join the production lineup.

The expansion gives Mercedes-Benz an important alternative to its higher-cost German manufacturing sites. If the company decides to increase production in lower-cost European locations, Kecskemét would be an obvious candidate to play a larger role.

That does not necessarily mean Mercedes-Benz intends to abandon Germany. The company’s German factories remain strategically important for vehicle production, engineering, technology and the broader Mercedes-Benz industrial network.

However, the cost difference makes future investment decisions increasingly difficult.

Mercedes-Benz Wants Employees to Work Five More Hours

The reported conflict is not limited to wages.

One of management’s most controversial proposals reportedly involves increasing working hours by five hours per week without increasing monthly salaries.

In practical terms, employees would work longer for the same basic pay. From the company’s perspective, the proposal would reduce the effective labor cost per hour while increasing available production capacity.

For employees and works councils, however, the proposal represents a significant change to working conditions.

The discussions reportedly also include a review of additional compensation and benefits.

Christmas bonuses, severance-related payments and other special benefits could potentially be reduced or changed. One special payment has already reportedly been postponed, while employee profit-sharing payments could also be reduced or temporarily suspended.

Works councils have rejected the proposals, with sources reportedly describing the company’s approach as excessive pressure and even “blackmail.”

Mercedes-Benz Says German Factories Have Too Much Capacity

The cost dispute comes as Mercedes-Benz evaluates the future capacity of its German manufacturing network.

In June, company management reportedly sent a letter to employees warning that the production capacity of German factories was “significantly above demand.”

Management also reportedly pointed to high sickness absence rates and fewer annual working days compared with some international locations.

According to the company’s assessment, Mercedes-Benz employs more people per vehicle produced in Germany than other manufacturers.

The conclusion is straightforward from a business perspective: German plants need to become more productive and less expensive if they are to remain competitive for future investments.

Management has therefore reportedly argued that labor costs need to be reduced throughout the organization, including development, sales, administration and manufacturing.

The most direct message is that employees should work more for the same salary.

Why Germany Is Becoming More Difficult for Automakers

The Mercedes-Benz dispute is part of a much larger problem affecting Germany’s automotive industry.

For decades, Germany’s car industry benefited from a combination of highly skilled workers, strong engineering capabilities, premium vehicle production and a sophisticated industrial supply chain.

But the economics of global vehicle manufacturing have changed dramatically.

Automakers are now dealing with higher energy costs, intense competition from Chinese manufacturers, weaker demand in some markets and enormous investment requirements for electric vehicles, batteries, software and new vehicle platforms.

At the same time, manufacturers are under pressure to keep prices competitive.

That creates a difficult equation for German automakers. Producing vehicles in Germany offers major advantages, including access to engineering expertise, established suppliers and a highly skilled workforce. But those advantages come with significantly higher labor and operating costs.

Lower-cost production locations in Central and Eastern Europe can therefore become increasingly attractive when manufacturers plan new capacity.

Volkswagen Has Already Shown How Serious the Problem Is

Mercedes-Benz’s reported internal pressure stands in contrast to the situation at Volkswagen, where factory closures, job reductions and extensive cost-cutting measures have already become a major part of the company’s restructuring discussions.

Mercedes-Benz has generally been viewed as being in a stronger financial and operational position than Volkswagen.

That makes the reported developments particularly significant.

If even a premium manufacturer such as Mercedes-Benz is considering whether its German factories are cost-competitive enough for future investment, the pressure on Germany’s traditional automotive manufacturing model is becoming increasingly difficult to ignore.

The question is no longer simply how many cars German factories can build.

It is how cheaply and flexibly they can build them compared with plants elsewhere in Europe and around the world.

Will Mercedes-Benz Move More Production to Hungary?

At this stage, there is no confirmed decision to close a Mercedes-Benz factory in Germany or build another plant in Eastern Europe.

However, the company’s existing investment in Hungary demonstrates that Mercedes-Benz already has a substantial lower-cost manufacturing alternative within its European production network.

The Kecskemét plant’s expanded capacity could give the automaker considerable flexibility when deciding where future models should be manufactured.

If German labor costs remain significantly higher and domestic factories continue to operate below their potential capacity, the economic argument for directing additional production toward Hungary or other lower-cost locations could become stronger.

For Mercedes-Benz employees in Germany, that creates an uncomfortable situation.

The future of their jobs may increasingly depend not only on the success of individual vehicle models, but also on whether German factories can demonstrate that their higher costs are justified by greater productivity, quality, flexibility and strategic value.

The Future of German Car Manufacturing Is at Stake

The Mercedes-Benz dispute illustrates a fundamental challenge facing the German automotive industry.

High wages, strong employee protections and extensive worker participation have historically been central components of Germany’s industrial model. They helped create a highly skilled manufacturing workforce and supported the country’s position as one of the world’s most important automotive production centers.

But global competition is forcing manufacturers to reconsider the economics of that model.

Chinese automakers are expanding rapidly, electric vehicles require enormous investments and European manufacturers are searching for ways to lower costs without sacrificing quality.

Mercedes-Benz now appears to be facing the same fundamental question as many of its German competitors:

How much more can it afford to pay to build a vehicle in Germany?

If the answer becomes “too much,” future investment could increasingly move toward lower-cost European production sites.

For now, no German Mercedes-Benz factory has been officially selected for closure. But the reported threat is a clear warning that Germany’s position at the heart of European car manufacturing can no longer be taken for granted.

The next round of negotiations between Mercedes-Benz management and its works councils could therefore have implications far beyond working hours and employee benefits. It could help determine where the next generation of Mercedes-Benz vehicles is built—and whether Germany remains at the center of the company’s manufacturing strategy.

Source: WirtschaftsWoche

News

Flood-Damaged 1991 Honda NSX Sells for More Than $51,000 in Japan

A flood-damaged 1991 Honda NSX has sold for ¥8.004 million, or roughly $51,000, in a Japanese online auction despite having nearly 147,000 miles, a four-speed automatic transmission, and extensive water damage. The surprising sale highlights just how valuable the first-generation Honda NSX has become—and how far collectors are willing to go to save one.

The Formula Red NSX, identified as a Japanese-market NA1 model, appeared on Yahoo Auctions Japan after being caught in severe flooding last July. According to the auction listing, the car had accumulated 236,776 kilometers, equivalent to approximately 147,126 miles, and had passed through multiple owners before its latest and rather unfortunate chapter.

There was no attempt to disguise the car’s condition. The seller openly described the NSX as flood-damaged, offered it strictly as-is, and characterized it as a restoration project—or, more bluntly, “junk.” The photographs tell the story even more clearly, showing the exotic Honda sitting in murky floodwater that rises high across its doors.

And yet, someone was willing to pay more than $51,000 for it.

A $6,400 Starting Price Turns Into a $51,000 NSX

The auction began at ¥1 million, approximately $6,400 at the time. Considering the car’s mileage, automatic transmission, and potentially catastrophic flood damage, that opening price seemed relatively understandable.

Instead, interest escalated rapidly.

A total of 93 bids eventually drove the price to ¥8.004 million. The auction concluded on August 15, with the winning bidder committing more than eight times the original starting price for an NSX that had recently spent time partially submerged in floodwater.

The final figure is particularly remarkable because this isn’t an ultra-low-mileage collector car or a rare manual-transmission example. It is a high-mileage automatic NSX that now requires an enormous amount of work before it can realistically return to the road.

That makes the sale as much a story about the growing value of the original NSX as it is about one particularly ambitious restoration project.

Flood Damage Could Be Far Worse Than It Looks

A car sitting in water up to its doors can suffer damage that goes considerably deeper than ruined carpeting, upholstery, and interior trim.

Modern cars are particularly vulnerable to water because of their extensive electrical systems, but even a relatively straightforward 1991 sports car contains an enormous number of electrical connections and components that can become problematic after exposure to floodwater.

Wiring harnesses, connectors, switches, electronic control units, sensors, seat components, and other electrical hardware can develop corrosion long after a flooded vehicle appears to have been dried out.

The problem isn’t necessarily whether the car starts immediately after restoration. The real concern is what happens months or years later when corrosion begins affecting connections that were exposed to contaminated water.

The drivetrain raises additional questions. The extent of the damage depends heavily on how long the NSX remained submerged and how far water penetrated into the engine, transmission, lubrication systems, and other mechanical components.

A proper restoration could therefore require a near-total mechanical and electrical inspection rather than simply replacing damaged interior components.

The Automatic Transmission Doesn’t Help

The flood damage isn’t the only issue facing this particular NSX.

The 1991 NA1 is equipped with a four-speed automatic transmission, rather than the manual gearbox that many enthusiasts consider essential to the classic NSX experience.

That’s significant because the original Honda NSX has become increasingly collectible, and manual examples generally command greater enthusiasm from performance-car buyers.

The car also has nearly 147,000 miles on its odometer. For a 35-year-old Japanese sports car, that mileage isn’t necessarily alarming by itself. In fact, a well-maintained NSX can be remarkably durable.

But when combined with severe flood exposure and an automatic transmission, it makes the ¥8.004 million sale even more difficult to understand at first glance.

The winning bidder clearly isn’t looking at this Honda in the same way as someone shopping for a conventional used car.

Why Would Anyone Pay $51,000 for a Flooded NSX?

There is one obvious answer: it’s an NSX.

The original Honda NSX occupies a special place in automotive history. Introduced at the beginning of the 1990s, it challenged established assumptions about what a Japanese sports car could be and demonstrated that performance, reliability, usability, and sophisticated engineering could coexist in an exotic-looking package.

Its aluminum-intensive construction was also revolutionary for the era and remains one of the characteristics that makes the first-generation NSX interesting to collectors and restorers.

That doesn’t mean every damaged NSX is automatically worth saving. But as surviving examples become increasingly valuable, even severely compromised cars can attract attention from specialists who are willing to undertake projects that would make little financial sense with an ordinary vehicle.

This particular NSX could ultimately be restored to driving condition. Alternatively, its value may lie in its model-specific components, especially if someone is searching for parts that are becoming increasingly difficult to source.

Either way, the car’s identity as an original NSX gives it a starting point that most flooded sports cars simply don’t have.

This Isn’t the First Extreme NSX Restoration

The difficulty of restoring a heavily damaged NSX shouldn’t be underestimated.

A previous example that was recovered from a river became a particularly memorable demonstration of just how complicated these projects can become. An experienced NSX restoration team committed to bringing that car back to life, yet the project remained unfinished years later.

That example provides an important reality check for anyone looking at the ¥8.004 million auction result and imagining a relatively straightforward restoration.

A flood-damaged NSX can quickly become a financial black hole.

Every component that has absorbed contaminated water needs to be evaluated. Every electrical connection potentially becomes a future failure point. Mechanical systems may need to be disassembled, cleaned, rebuilt, or replaced. Finding suitable replacement parts can add another layer of expense, particularly for a vehicle whose components are becoming increasingly valuable.

The final restoration bill could therefore reach a substantial percentage of—or potentially exceed—the car’s eventual market value.

The NSX Collector Market Is Changing

The auction result is nevertheless revealing.

There was a time when a 147,000-mile automatic NSX with major flood damage would primarily have been considered a parts car or an unrealistic restoration candidate. Today, the original NSX has developed enough collector appeal that even severely damaged examples can attract serious bids.

That doesn’t necessarily mean the winning bidder made a financially rational decision. Collecting cars rarely works that way.

For the right enthusiast, originality, provenance, and the opportunity to rescue a historically important vehicle can be worth more than a conventional calculation of restoration costs.

The Japanese-market provenance could also have played a role. The car is an NA1 NSX from the model’s early years, making it an interesting piece of Honda performance history despite its unfortunate condition.

A $51,000 Gamble on a Submerged Supercar

Ultimately, the ¥8.004 million sale is difficult to justify if the NSX is viewed purely as transportation—or even as a conventional investment.

A 1991 Honda NSX with nearly 147,000 miles, an automatic transmission, and severe flood damage faces enormous restoration challenges. Paying more than $51,000 before the restoration has even begun requires considerable confidence, financial resources, or simply a deep emotional attachment to the NSX.

But that’s precisely what makes this auction fascinating.

The buyer wasn’t purchasing a pristine supercar. They were purchasing the possibility of one.

If the restoration succeeds, the car could emerge as a remarkable example of an early NSX saved from an unusually bad fate. If the damage proves too extensive, however, the buyer could be left with an extraordinarily expensive collection of parts.

For now, the only thing certain is that the original Honda NSX has become valuable enough for someone to spend more than $51,000 on a car that recently spent time sitting in floodwater.

That’s a remarkable statement about the legendary Japanese supercar—and an even more remarkable gamble on one very wet restoration project.

Source: Yahoo Japan

News

Lamborghini Temerario Becomes a 920-HP Police Car

Lamborghini has unveiled a very different kind of supercar: the new Lamborghini Temerario police car, officially presented to the Italian State Police at the automaker’s headquarters in Sant’Agata Bolognese. But unlike most police vehicles, this one is not primarily designed to chase speeding drivers. Its most important job will be helping save lives.

Presented in the presence of Italian Minister of the Interior Matteo Piantedosi, Lamborghini Chairman and CEO Stephan Winkelmann, members of the company’s Board of Directors and senior representatives of the Italian State Police, the new Temerario will be deployed for high-priority duties including the emergency transportation of human organs and medical supplies.

The arrival of the Temerario marks the latest chapter in a remarkable partnership between Lamborghini and the Italian State Police that has now lasted more than two decades.

Lamborghini Temerario Police Car Continues a 20-Year Tradition

The relationship between Lamborghini and the Italian State Police began in 2004, when the first Lamborghini Gallardo police car entered service.

The Gallardo quickly demonstrated that Lamborghini’s performance could have a practical purpose beyond the racetrack. In September 2004, one of the police Gallardos carried out its first organ-transport mission, establishing a tradition that has continued through several generations of Lamborghini supercars.

The Gallardo LP 560-4 later joined the fleet, followed by the Lamborghini Huracán. These cars were deployed along some of Italy’s major motorway routes, where their speed and performance made them particularly suitable for time-critical missions.

More recently, the Lamborghini Urus Performante joined the Italian State Police fleet in 2023, adding a high-performance SUV to the lineup.

Across more than 20 years, a total of six Lamborghini vehicles have served with the Italian State Police. Together, they have participated in more than 200 organ-transport missions throughout Italy.

The cars have also played a role in road-safety education, appearing at more than 1,500 events dedicated to promoting safer driving.

920-HP Lamborghini Temerario Brings Hybrid Supercar Technology to the Police

The new police-spec Lamborghini Temerario represents a major technological step forward compared with its predecessors.

At the heart of the Temerario is an all-new 4.0-liter twin-turbocharged V8 engine, combined with three electric motors. The electrified powertrain produces a total system output of 920 CV, making the Temerario one of the most technologically advanced Lamborghini models ever produced.

The combination of a high-output combustion engine and electric motors gives the Temerario the performance expected from a Lamborghini while also introducing a greater degree of efficiency and flexibility.

For the Italian State Police, however, the significance of the powertrain goes beyond headline horsepower.

When an organ or critical medical supply needs to be transported quickly between hospitals, every minute can matter. The Temerario’s combination of performance, advanced technology and all-weather capability is therefore intended to provide the police with a highly capable tool for missions where time is critical.

From Supercar to Life-Saving Emergency Vehicle

While the Lamborghini Temerario is capable of extraordinary performance, its role with the Italian State Police is fundamentally different from that of a conventional supercar.

The vehicle will be used for some of the police force’s most important and delicate assignments, particularly emergency organ transportation and the delivery of medical supplies.

This makes the Temerario police car more than a publicity vehicle. Its role continues a long-standing practice in Italy in which specially equipped high-performance police cars are used to move organs rapidly across the country’s road network.

The Lamborghini name may be associated with exotic styling, enormous performance and limited-production supercars, but the State Police partnership gives those characteristics a practical purpose.

Lamborghini and Italian State Police Renew Historic Partnership

The Temerario’s arrival reinforces a relationship that has become an unusual but recognizable part of Italian automotive culture.

The presentation ceremony at Lamborghini’s Sant’Agata Bolognese headquarters brought together representatives from both organizations, including Minister of the Interior Matteo Piantedosi and Prefect Renato Cortese, Central Director of the Traffic, Railway and Special Units Police of the Italian State Police, representing Chief of Police and Director General of Public Security Prefect Vittorio Pisani.

Lamborghini CEO Stephan Winkelmann welcomed the delegation at the company’s headquarters, highlighting the continuing connection between the automaker and the institution.

The partnership reflects a broader idea: that advanced automotive technology can serve purposes extending well beyond performance and luxury.

Lamborghini Police Cars Have Helped Save Lives Across Italy

Over the years, Lamborghini’s police vehicles have become closely associated with emergency medical missions.

The more than 200 organ-transport missions completed by Lamborghini police cars demonstrate the practical role these vehicles can play when speed and reliability are critical.

In such situations, the supercar’s performance is not simply a statistic for a specification sheet. It can become an operational advantage, helping reduce transportation times when a donated organ needs to reach a recipient hospital within a limited window.

At the same time, Lamborghini’s police vehicles have been used extensively for public road-safety initiatives. Their presence at more than 1,500 educational events has allowed the Italian State Police to combine an unusual automotive attraction with messages about responsible and safe driving.

The Temerario Represents a New Era for Lamborghini Police Cars

The introduction of the Temerario signals a technological transition for Lamborghini’s police fleet.

Earlier generations, including the Gallardo and Huracán, relied primarily on naturally aspirated or turbocharged internal-combustion power. The Temerario introduces a fundamentally different approach with its V8 hybrid powertrain and three electric motors.

With 920 CV of combined output, the new car demonstrates how electrification is becoming part of Lamborghini’s high-performance engineering philosophy.

For the State Police, that technology could translate into rapid response capability while also demonstrating how high-performance hybrid systems can be adapted to demanding real-world applications.

The result is a police car that represents both the heritage of Lamborghini and the direction of its future technology.

“I Motori della Polizia” Book Celebrates Italy’s Police Vehicles

The Temerario presentation also featured the launch of a new book titled “I motori della Polizia.”

Produced by the Institutional Communications Office of the Italian State Police and published by Giunti Editore and Giorgio Nada Editore, the book explores the history of the vehicles used by the institution throughout the decades.

Its coverage extends beyond automobiles to include motorcycles and specialized vehicles, offering a broader look at how transportation technology has supported the Italian State Police.

The book also places the Lamborghini partnership within a much larger automotive history, showing how police vehicles have evolved alongside Italian society and technology.

Lamborghini Temerario Police Car Is More Than a Supercar

The new Lamborghini Temerario police car combines two seemingly different worlds: Italian supercar engineering and public-service operations.

With its 4.0-liter twin-turbo V8, three electric motors and 920 CV, the Temerario brings cutting-edge Lamborghini technology to the Italian State Police. Yet its most impressive specification may be what the car is expected to accomplish rather than how quickly it can accelerate.

From the first Gallardo’s organ-transport mission in 2004 to more than 200 subsequent organ-transport operations, Lamborghini’s police cars have developed a unique role in Italy.

Now, the Temerario takes that tradition into a new hybrid era.

For Lamborghini, it is another demonstration of technological excellence. For the Italian State Police, it is a specialized emergency vehicle. And for the people whose lives depend on the rapid delivery of an organ or medical supply, it can be something considerably more important: a machine built to help give them more time.

Source: Lamborghini