There is no question that the auto industry as a whole has been effected by the recent economic downturn, but the world’s luxury automakers seemed to have sidestepped the downturn better than most of the ‘common’ brands. But Wall Street’s collapse is now spreading to even the premium brands, which has at least once Mercedes exec sweating beneath the collar.
Speaking at an event in Germany, Mercedes COO Rainer Schmueckle warned that the brand was in the midst of a “full-blown sales crisis.” Schmueckle continued by saying personnel cuts could be necessary if the weak market continued for a significant amount of time.
Mercedes-Benz sales dipped by 3 percent in September, but tumbled by nearly 16 percent in August, according to Automotive News. Sales of Mercedes’ most profitable model – the S-Class – are also down this year.
Those declines forced Mercedes-Benz to cut back its 2008 earning expectation back in July, and the German automaker is expected to further reduce its earnings forecast when third-quarter results are released this Thursday.
Mercedes-Benz employs about 98,000 workers world-wide, a figure that could decline along with the brand’s sales in 2009.
