The Mercedes-Benz Plant in South Africa as an Example of Restructuring – as seen from a Different Perspective

Summary

The Mercedes‐Benz plant in East London, South Africa, has been one of the world’s best performing car‐making facilities for many years. The foundation for this success was laid with a restructuring programme that saw a 20% reduction in direct employees and a 50% reduction in indirect employees in a two‐phase process, with costs and quality being improved at the same time. The entire process lasted three years and was supported by the implementation of a human resources development (HRD) plan.