Automaker Mercedes-Benz is considering closing its plants in Germany, citing disagreements with its works council over cost-cutting, the website infohub.kz reports.

HR chief Britta Seeger said the company needs to secure concessions from employees through negotiations with the works council.

"We all want to avoid plant closures at all costs. But now, unfortunately, we are forced to examine this option more concretely," Deutsche Welle quoted her as saying.

The company's board has frozen all new investments in its German facilities, according to the report. Mercedes-Benz currently operates 12 production sites in Germany.

With profits falling in its passenger car segment, management is demanding that employees work longer without additional pay, with discussions under way to increase the workweek from 35 to 40 hours. For the works council and the IG Metall union, however, this is a red line, as the 35-hour workweek is one of their key achievements.