The chief production officer at German carmaker Mercedes warned on Monday that two of the company's plants in Germany will have to be shut down if costs are not reduced.

 

Michael Schiebe made the comments at a staff meeting in Sindelfingen, near Stuttgart, a company spokesman confirmed.

 

"It is our clear aim to retain all our German sites," Schiebe said, according to the spokesman. "To achieve this, we must agree on measures acceptable to all in order to reduce costs in Germany. If we do not succeed in this, we will have to close one German body shop and one German powertrain plant."