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German carmaker Mercedes-Benz could close two of its factories if it fails to reduce operating costs, the company's Head of Production, Michael Schiebe, warned during an employee meeting on Monday.

"Our clear goal is to maintain all of our production sites in Germany," Schiebe said. "To achieve this, we must agree on measures that are acceptable to everyone in order to reduce costs in Germany . If we fail to do so, we will have to close a body shop and a German powertrain plant."

The employee meeting took place in Sindelfingen, a city near Stuttgart, where thousands of workers took to the streets on Monday to protest job cuts and cost-reduction measures in the automotive industry .

According to Schiebe, the facilities at risk are a body shop plant, where vehicles are assembled, and a powertrain plant, where automotive components are manufactured.

In Germany, Mercedes-Benz's body shop plants are located in Sindelfingen, Rastatt, and Bremen. Its powertrain plants are based in Untertürkheim, Affalterbach, Berlin, Hamburg, Kamenz, Kölleda, and Arnstadt.

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