A Monday rumor that Daimler will cut hours and shifts at its largest plant in Sindelfingen, Germany is now being denied by a company spokesperson. The Mercedes-Benz manufacturer was said to be considering doing so by an unnamed source due to the plummeting demand for the luxury cars in the Chinese and European markets.
The informant also maintained that labor representatives and management were in the negotiation stages of changing up the shifts and cutting them on all production lines, according to Reuters.
Other reports have the flagship S-Class sedan doing particularly poorly in sales and demand, employees say. Also, relations related to the shifts in the fourth quarter are strained enough that Daimler had to call in mediators to settle them, according to a German paper. The official statement from a Daimler spokesperson is that the automaker will look at demand and adjust output as needed to keep stocks at optimum levels.
Last week, Daimler said it will introduce a cost savings program, with sources estimating it to total more than $1.3 billlion but not see any jobs cut. A spokesperson told Automotive News that Daimler plans to add 250 employees by 2014 to the plant's roster.
China is becoming an increasingly important market for large automakers, so much so in fact that Mercedes is considering unveiling its next S-class in China rather than elsewhere.