While it seems we can’t go a day without news of one of the big three domestic automakers announcing job cuts, production slashing or a plant closure, the problem is not just restricted to them. Thursday’s reports confirm and add more information to earlier news that have the German automaker announcing cuts of 40,000 units over the next four months.
The majority of the cutbacks will come from Mercedes-Benz’ Alabama SUV plant, where the ML and GL are produced, according to Autocar reports. It was not made clear exactly how many units will be cut from production. Six night-shift production periods will be cancelled, and Thanksgiving and Christmas holiday closings will be extended. Employees at the plant will be able to use unused vacation days to cover the closures, and those who have no time left or need to work will get other options, although these haven’t been named.
The automaker is also facing a drop in sales of its flagship luxury sedan, the S-class, in America, sales of which are down by 23 percent.
To help it boost sales in the face of changing consumer buying patterns, Mercedes-Benz is bringing the small A- and B-class models to the U.S. market by 2011 for the first time.
07/31, 1:43 PM
posted by:
tzu13
“Employees at the plant will be able to use unused vacation days to cover the closures”
…So nice of them, letting their employees use their vacation time like that.
07/31, 2:32 PM
posted by:
xyunya
At least they are not firing them. Look at Detroit and surroundings.
Btw, I don’t believe that S-class not selling ’cause price of gas. People who can afford 90K car can afford $4/gallon gas more sow then folks who drive 20-25K cars. I personally think it is simply ugly and they sold all they going to sell of those.
07/31, 2:38 PM
posted by:
benzfan
I think they need to reconsider their SUV line-up. It’s too saturated. The R, GL, ML, G and now GLK. Too much to choose from in a market that is dying. They should start building the C class or the A and B class here in the states.
07/31, 4:57 PM
posted by:
johnnycanuck
A tank with a three pointed star is still a tank. I doubt even Mercedes is truly arrogant enough to believe they would escape the current economic siege without incurring some damage.
07/31, 6:40 PM
posted by:
ktulu
good move