Mercedes S-Class faces downturn in sales globally. Here's what Merc plans to do

27 days ago | 25 Views

In a significant turn of events, the Mercedes-Benz S-Class is facing a downfall in sales globally. In view of this, the company has decided to slash production for the flagship model at its Sindelfingen factory, a report by Automobilwoche stated. The company claims that the decision comes after considering the declining demand and the ongoing challenges faced by the luxury car market.

Interestingly, during the first quarter of 2024, Mercedes S-Class sales declined by a staggering 37 per cent, dropping to 16,900 cars. Even more interesting is the fact that Mercedes has not reported the sales figures for the S-Class along with during the second quarter. What is known though is that the combined deliveries for the S-Class, EQS, EQS SUV, and GLS fell by almost 23% to 33,400 cars.

Shift to single-shift production

In view of this, Mercedes-Benz has confirmed that it will be reducing production of the S-Class at its Sindelfingen factory. The plant will cut down its production to a single-shift operation, a decision that has been met with concern from suppliers and industry experts.

With this single-shift production, it is stated that some of the workers in the assembly line will be reassigned to other tasks within the factory, more specifically to the assembly line of the Mercedes EQS. The shift to single-shift production will result in some workers being reassigned to other tasks within the factory, where the fully electric EQS is also manufactured.

On the other hand, BMW and Audi, arch rivals of Mercedes-Benz, experienced a mixed first half of 2024. Where BMW 7 Series and 8 Series sales increased by 11.4 per cent, Audi, meanwhile saw a 16.5 per cent drop in sales for ist D-segment vehicle.

Also watch: Mercedes S Class: First class luxury, home theatre, spa and discotheque on wheels

Mercedes S-Class update and future plans

The German luxury carmaker, Mercedes-Benz is reportedly working on a mid-cycle update for the S-Class. Mercedes-Benz CEO, Ola Källenius had earlier announced increasing the investment for the S-Class. Meanwhile, earlier during the year, the company also announced its adjusted EV goals, which meant leaning its focus more on the internal combustion engine.

The Mercedes S-Class has been the flag bearer for the company for centuries now. However, the current downfall in sales indicates the evolving state of the luxury car market.