MERCEDES-BENZ is as soon as once more lowering manufacturing at its historic “Manufacturing facility 56” plant in Sindelfingen, Germany, as demand for large-segment S-Class and EQS-Class fashions plummets.
For the primary time, the Mercedes-Benz S-Class fashions can be produced in only a single shift, with the ability’s nearly 1500 workers instructed to organize for cutbacks once they return from their August trip interval.
The cuts observe comparable strikes made final 12 months and are set to begin from the fourth quarter of this 12 months. Mercedes-Benz produces S-Class, EQS-Class, and associated Maybach variants on the south German facility.
“It’s deliberate to switch manufacturing at Manufacturing facility 56 to a single-shift operation within the fourth quarter and to deploy among the workers in different manufacturing areas of the plant,” a spokesperson for the model instructed German outlet Automobilwoche.
It’s reported that the plant’s capability has been underutilised for months as demand within the upper-large section dwindles. Employees are anticipated to be reallocated to Corridor 46 the place the E-Class and GLC-Class are produced.
Mixed output of Mercedes-Benz’s prime 4 fashions – the S-Class, EQS-Class, EQS SUV, and GLS-Class – had been simply 33,400 models within the second quarter of 2024, a drop of almost 25 per cent on the identical time final 12 months.
Automobilwoche says Mercedes-Benz’s income have adopted the downward pattern, with top-segment margins falling from 13.5 to 10.2 per cent.
Gross sales of the Mercedes-Benz S-Class fell throughout all markets within the first half of 2024, the higher premium mannequin down 13.0 per cent in China (to 10,430 models), 19 per cent in the US (to 5026 models), and 27 per cent in Europe (to 4249 models).
A facelifted S-Class is due in 2025, although it’s undecided if this can be adequate to return Sindelfingen to a two-shift rotation.
The information comes simply weeks after competitor Audi introduced it could think about shuttering its Brussels facility the place its full-size Q8 e-tron is produced.
Gradual gross sales of the mannequin – and a broader slow-down in premium battery electrical automobile uptake – means a “restructuring of the positioning” is predicted that “may embody a cessation of operations if no various is discovered”.
Audi has famous a pointy lower in demand for the high-end SUV, saying it is going to take all views on the matter into consideration earlier than a call is made.
“Challenges in restructuring the Brussels web site embody its specific format and the very fact it is extremely near the town centre, leading to increased manufacturing prices in comparison with different vegetation and prompting the automaker to contemplate ending manufacturing of the Q8 e-tron forward of schedule,” the German producer stated in an announcement.
“This announcement triggers the launch of the data and session course of the place the corporate administration will talk about options for the workers and the positioning along with the accountable social companions and study alternate options intimately.”
