Mercedes-Benz may close two of its plants in Germany, according to a report from Ukrainian National News (UNN), with high costs cited as the decisive factor behind the potential shutdowns.

The report names cost pressure as the trigger. It does not specify which two German sites face closure, how many jobs would be affected, or what timeline the automaker is working to. That leaves the claim at the level of a reported intention rather than a confirmed capacity decision, and it should be weighed accordingly against Mercedes-Benz's actual production footprint and announcements.

Cost pressure on German auto manufacturing is not new. Energy prices, wage levels and slack demand for high-end vehicles in key export markets have squeezed margins across the industry, and several OEMs with German capacity have already trimmed shifts or flagged restructuring. Against that backdrop, a plant-closure review at Mercedes-Benz would fit a broader pattern of capacity rationalization among premium manufacturers, though the company has not, in this report, confirmed the sites or the scale of any shutdown.

For suppliers, the stakes are concrete. Mercedes-Benz operates a deep Tier 1 network around its German assembly operations, and any closure of two plants would ripple through stamping, powertrain, interior and logistics contracts tied to those sites. Tier 2 and Tier 3 vendors clustered near affected plants would face volume losses well before any final shutdown date. Until Mercedes-Benz names the sites, suppliers can do little but scenario-plan around its German footprint.

What to watch next: whether Mercedes-Benz confirms the closures and identifies the two plants; any works council or IG Metall response, which in Germany typically precedes and shapes any formal closure decision; and whether the automaker pairs a shutdown announcement with reallocation of volume to remaining European plants. The company's next scheduled results or strategy update is the most likely venue for confirmation either way.