Mercedes-Benz Cut S-Class And EQS Productions, Here's Why
JAKARTA - A premium automotive manufacturer from Germany, Mercedes-Benz confirmed that it will cut production from its flagship models, namely S-Class and EQS due to declining demand for the two luxury sedans.
Reporting from Carscoops, Thursday, August 1, the assembly of the two models which took place at the 'Factory 56' Sindelfingen, Germany will reduce its operational schedule from two shifts to one shift in October.
"We continue to optimize our production network and use high flexibility to react to fluctuations and changes in frame conditions with respect to geopolitical, micro, and macro economic developments and to remain competitive," said Mercedes-Benz.
With the reduction in factory operational shifts, it is still unknown whether Mercedes-Benz will compensate workers when there is a change in schedule.
As Mercedes said in a statement, the facility responsible for building flexible S-Classes and EQS, and it is highly likely for companies to re-shift to a two-shift system in the future.
In the first half of 2024, sales of S-Class experienced a decline of up to 22 percent or sent to customers as many as 28,100 units.
In addition, another factor is why S-Class sales are not as good as before because it is possible that prospective buyers will wait for a facelift version in 2026 or launch around next year and will feature a style revision that includes a new design of the headlights, complete with a star-shaped DRL LED light.
In June, the facelift version of the S-Class was also caught on camera by spies testing a camouflage sticker in several parts.
It was also stated that this luxury manufacturer will take the same approach as the latest EQS in the S-Class, namely that the current generation will last longer with a number of refreshers that look newer than before.
Mercedes-Benz' move to extend the life of the seventh generation of luxury sedans was also carried out by rivals, namely Audi. The four-ring logo manufacturer also extends the current generation of A8 who are also direct competitors from S-Class.
It is estimated that the facelift version of the Mercedes-Benz S-Class will be launched at the end of this year or at the launch of the 2025 model.