ZF pays 250000 euros, Mercedes Benz pays 500000 euros, automotive giant bids farewell to glory with 'sky high severance pay'

After Mercedes Benz announced a severance pay of up to 500000 euros for its employees, the German automotive parts giant ZF has officially released a severance compensation plan, with a maximum of 250000 euros. The German automotive industry is bidding farewell to nearly a century of manufacturing glory with "sky high severance pay". According to domestic media reports in Germany, in order to achieve the goal of reducing labor costs by 1 billion euros, Mercedes Benz has attracted about 4000 non production employees to voluntarily resign with generous economic compensation, who hold a company agreement not to be laid off by 2034. ZF's restructuring plan requires the layoff of 14000 employees and a reduction of 500 million euros in labor costs. It is reported that both companies have set up accelerated resignation rewards. In recent years, the German automotive industry, which is undergoing transformation, has been in a rhythm of layoffs and factory closures,. Since the beginning of this year, the survival environment of German companies has deteriorated. Under the influence of various factors such as the stagnation of electrification transformation, the impact of US tariffs, the cost surge caused by geopolitical crises, and the suppression of Chinese companies' competitiveness in cost and new technology applications, the profits of German automotive industry giants in the first half of the year have generally declined by double digits year-on-year. Among them, Mercedes Benz's net profit has halved year-on-year, while ZF has a loss of nearly 200 million euros and a debt of 15 billion euros. There are over one million employees in the German automotive industry, and the number of self rotating vehicles has decreased by tens of thousands to date. Analysis suggests that even German trade union organizations cannot prevent this "slimming" action, and a more streamlined organizational structure and efficient innovation mechanism are prerequisites for the German automotive industry to regain competitiveness.