Mercedes CEO: Germans, Work More to Beat Populism

1. Overview

Mercedes-Benz CEO Ola Källenius recently urged Germans to “work more” as part of a wider debate about the country’s economic competitiveness. He linked higher working hours to fighting stagnation and preventing a rise in populism. His comments were made public in the context of a WELT economic summit and have sparked a heated discussion involving industry leaders, unions and politicians about productivity, the 40-hour week, and the role of part-time work in Germany.

2. What the Mercedes CEO said and why it matters

Källenius emphasized that Germany needs stronger productivity, willingness to perform and a flexible labor market. While he framed the call as a response to economic challenges, he also warned that declining competitiveness could feed political discontent and boost populist movements. His remarks focused on combating stagnation and keeping the country economically resilient amid global pressures.

Support from other top managers

Several other executives at the summit shared similar concerns. Vodafone chief Marcel de Groot and BMW boss Oliver Zipse both treated the 40-hour workweek as a baseline while stressing the need for greater productivity and flexibility. Lufthansa CEO Carsten Spohr criticized Germany’s high part-time rate and pointed to Swiss colleagues working roughly 200 hours more per year as an example of different labor intensity.

• 40-hour week cited as a baseline for competitiveness.
• Focus on productivity and flexibility rather than raw hours alone.
• Comparisons drawn with Switzerland and other higher-working economies.

3. Industry context: job cuts, costs and global pressures

The auto industry backdrop is crucial to understanding Källenius’ stance. German manufacturers are navigating a major transformation: electric vehicle transition, intense competition from China, and the impact of US tariffs. These pressures have led to large-scale job reductions across the sector and its suppliers.

Källenius has also pushed cost-cutting measures at Mercedes, including a plan to save around 5 billion euros by 2027 and to shift some production to lower-wage countries. Critics argue that heavy dividend payouts and share buybacks amount to ‘money burning’ at a time when investment and job security are at stake.

4. Political and union reactions

Reactions have split along political and social lines. Unions such as IG Metall reject the idea that working more hours is the only answer; they call instead for shorter working time with full wage compensation and oppose job cuts. Politicians from the SPD, including Manuela Schwesig, criticized proposals to restrict part-time entitlements, calling such suggestions unwise and warning against repeatedly claiming that Germans do not work enough.

Union perspective

IG Metall and other labour representatives emphasize worker protections and reject policies that would increase hours without safeguarding wages and jobs. They highlight the social consequences of forcing longer working times onto people already balancing family and other commitments.

Political pushback

Members of the Union (CDU/CSU) have proposed limiting part-time claims to raise overall working hours, but those moves have met resistance. SPD figures argue such measures risk alienating voters and oversimplifying the causes of economic underperformance. The debate over part-time work—which sits near a 40% rate in Germany—remains highly politicized.

5. The broader debate: productivity, flexibility and solutions

There is broad agreement that Germany faces a productivity gap compared with other major economies: estimates in the discussion point to productivity being roughly 30% lower than the US and about 70% lower than China in certain measures. But solutions differ. Some consultants like Roland Berger call for longer working hours to spur growth, while leaders such as Commerzbank’s Bettina Orlopp stress efficiency and smarter investment over simply increasing hours.

Options on the table

1. Increase working hours or reduce part-time prevalence to raise total labour input.
2. Boost productivity through investment in technology, training and flexible working models.
3. Prioritize efficiency and targeted reforms rather than blanket hour increases.
4. Protect workers from job losses by tying reforms to employment guarantees and fair wage policies.

The conversation is ultimately about balancing competitiveness with social fairness. Källenius frames longer or more intensive work as one lever to counter economic decline and the political risks that follow. Others argue for a mix of productivity-enhancing investment, flexible labor markets and protections to prevent social fallout. The outcome will shape Germany’s approach to industrial change, job security and its political landscape in the years ahead.