Mercedes S Class production cut as sales fall

Mercedes is cutting production of the range topping S Class to a one shift operation as sales fall ahead of the new 2013 S Class.

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Most of the doom and gloom in the car industry has seen mainstream car makers taking the brunt of economic woes, with car makers like GM Europe and PSA really struggling.

But there are now plenty of signs that even premium car makers are not immune from the economic climate – particularly in Europe – as sales start to slide.

We recently commented that Jaguar sales are not as strong as they were and now it seems Mercedes is starting to feel the punch as sales of the range-topping S Class falter. But it’s not just falling sales in Europe that has caused a drop-off in demand for the S Class.

There’s an all new Mercedes S Class due in 2013 and there are certainly buyers choosing to wait for the new S Class instead of buying a  current model (although the Mercedes S Class is still the nest-selling luxury car in the UK) and Mercedes has had problems with its dealer network in China – a source of much of the buoyancy for premium car makers – with sales last month for Mercedes increasing only 7 per cent whilst BMW’s rose 59 per cent.

For now, Mercedes is to move to a single production shift for the S Class until the 2013 S Class arrives in the spring with workers being moved over to C Class production at Sindelfingen. But it’s a painful scenario for Mercedes as the S Class isn’t just the flagship of the Mercedes range, it also yields the biggest percentage profit too.

Mercedes S Class Photos >>

Source: Automotive News Europe