Mercedes S-Class Production Slowed on Soft Demand

Mercedes S-Class Production Slowed on Soft Demand

Mercedes is dropping one of the two shifts that normally build its flagship S-Class cars because of weak demand.

Built in a plant in Sindelfingen, near Stuttgart, the S-Class’ dropped shift will help account for a 27 percent decrease in sales over the last eight months. For the time being, workers will be transferred to build the C-Class until the next-generation S-Class is ready to debut in 2013.

Meager European economic activity already dealt blows to the mainstream automotive industry, but Chinese demand largely buoyed luxury car sales to help their manufacturers better weather the economic storm.

Despite that, Mercedes is suffering in China more than BMW or Audi. The brands enjoyed 59 percent and 21 percent increases respectively while Mercedes only saw a 7 percent gain.

The brand blames those poor numbers, at least in part, on its local sales organizations.

[Source: Automotive News]

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