Mercedes moves the production of E-Sprinter to Poland. Sadness at the Fair in Munich

Mercedes-Benz decided that by the end of 2029 he would close the factory in Ludwigsfelde near Berlin and move the production of E-SPRINTER electric vans to Jawor in Lower Silesia. The decision caused controversy in Germany, but not only for this reason at the Munich Motor Show was “sadness, not the joy of the prime minister and the vision of the future.”

Mercedes-Benz made a strategic decision that shocked the German market and at the same time opens a new chapter in the history of Polish automotive industry. The concern will close its factory in Ludwigsfelde near Berlin by the end of 2029, transferring the production of E-SPRINTER electric vans to Poland. The main beneficiary of this revolution is the Mercedes factory in Jawor, Lower Silesia, which is to become one of the most important production centers in Europe.

The decision, officially confirmed by the German Ministry of Economy, caused a wave of controversy in Germany. Plant in Ludwigsfelde, employing over 2.2 thousand people, he was the pillar of the Brandenburg industry for over 30 years. Trade unionists and local authorities protest, emphasizing the potential of the factory and demanding the maintenance of production.

Why does Mercedes transfer production to Poland?

The shift of production from Germany to Poland is the result of a deep economic and strategic analysis. There are two key factors behind this decision. The first are labor costs – Germany is currently one of the most expensive countries for car production. According to data from 2024, the average employee costs for one manufactured vehicle in Germany are $ 3307. In Poland, these are only $ 663 – a difference of over five times, which puts German factories in a difficult competitive situation.

The second reason is competition from Asia – the European automotive industry is struggling with the influx of cheap electric cars from China. To maintain profitability and be able to compete on the global market, European companies, including Mercedes, are forced to cut costs and restructure.

“Sadness, not the joy of the prime minister and the vision of the future”

The transfer of Mercedes production is part of a wider, gloomy mood in the European automotive industry. As indicated by Allianz Trade experts, a car showroom in Munich, which was usually a festival of engineering, this year reflected the difficulties that the sector is facing. “Sadness, not the joy of the prime minister and the vision of the future” – we read in the report Allianz Trade. The industry's problems include:

• A decrease in registration of new cars – in July 2025 the number of registrations in Europe dropped by 0.7%. Total sales remain 20-30% lower than in 2019, and in Germany, France and Italy there were drops by 2%, 8% and 4%, respectively,
• Decorating operational margins – the average operational profitability of European producers has fallen by more than 2 percentage points this year. This caused companies to close the plants, slow down employees and connect platforms to reduce costs,
• Challenges related to electromobility – despite the emphasis on electric vehicles, their dissemination is slow. In almost 60% of EU countries, the penetration of electric vehicles is below 15%. High prices, energy costs and uneven access to charging infrastructure continue to favor hybrid vehicles.

Jawor is a new automotive hub

The factory in Jawor, which has been producing engines and batteries since 2019, is already being prepared to accept new production. The construction of a new plant is underway, and the planned investments are to amount to over PLN 1.5 billion. As part of the expansion of Mercedes, he undertook to create at least 300 new jobs until the end of 2027. The new E-SPRINTER production line is expected to start in 2026.

In addition, Jawor's future can be even more promising. Mercedes plans to create a joint venture with the American manufacturer of Rivian electric cars. Unofficial reports indicate that it is in Poland that a new factory can be created that will produce large electric vans for the needs of both brands.

Ed. Jm

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