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Mercedes Slashes SUV Production
Written by: Autocar staff   http://www.autocar.co.uk
07/31/2008 - 11:46 AM
Stuttgart, Germany
 
As many as 40,000 units of M-B SUVs and large sedans have had their production canceled. (Mercedes-Benz photo) ยป More Photos

More evidence of global economic downturn has come with Mercedes-Benz’s announcement that it intends to slash production over the next four months.

40,000 units of previously-planned production will be lost, with cuts taking place on both sides of the Atlantic. The Alabama plant that builds the ML and GL SUVs faces the brunt of cutbacks after American SUV sales were hit by economic uncertainty and the rising oil price.

Mercedes bosses will be more alarmed by a sharp decline in sales of its
most profitable model, the previously rock-solid S-Class. According to the company insiders, the model is down by 23 percent year-on-year in America.

Full-blown recession in the USA would cause serious distress to all the established premium car makers, as it is the biggest market for almost all luxury models. Mercedes is responding to the decline in sales by considering taking smaller models stateside, including the next-generation A-Class and B-Class.

Mike Duff/Autocar magazine.
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