Mercedes Cutting Production at Sindelfingen Factory

Mercedes-BenzMercedes-BenzGermany, 1924 > present197 models
9852 photos
33 videos
is cutting production at its Sindelfingen factory, but it has a fairly good reason. The Sindelfingen  factory produces the S-ClassMercedes-Benz S-ClassGermany, 1972 > present6 series
293 versions
353 photos
1 video
, E-ClassMercedes-Benz E-Class Gen.5Germany, 2009 > present345 versions
755 photos
and C-ClassMercedes-Benz C-Class Gen.4Germany, 2007 > 2013188 versions
444 photos
, and Mercedes is very close to introducing a new S-Class.

This has caused a problem between the company and its labor union. While Mercedes has been receiving fewer orders for the aging S-Class, workers do not want to work fewer hours. The workers and management cannot agree on layoffs for the fourth quarter and have had to meet with a conciliation board. The Sindelfingen factory employs 23,000 workers.

To save money, Mercedes has cancelled Friday shifts on the E-Class production line. Workers on the S-Class line have been laid off for over 100 hours due to lack of demand. To further reduce costs, Mercedes is discussing giving workers a 3 week Christmas break. 

It says that another part of the problem is that the C-Class and E-Class, which are among its more profitable models, are in an awkward middle phase of their life. The E-Class has a pending refresh, and the C-Class is two years away from its facelift. 

Mercedes recently announced that it will not meet protfit forecasts for 2012 due to the Euro crisis and stronger than expected competition in China.

Source: Stuttgarter Zeitung