Mercedes-Benz Cuts Production of Current S-Class on Lower European Demand

The gloomy clouds that once dangled only over the southern parts of Europe have now moved across the continent and are affecting more and more companies, including Mercedes-Benz that has cut one of the two production shifts it normally runs for its current generation S-Classat the Sindelfingen plant in Germany.

The decision was made after European sales of its flagship model dropped by 27 percent to 5,227 units in the first eight months of the year,according to data provided by market researchers JATO Dynamics.

Reuters reported that the move will result in about 8,000 fewer S-Class cars being built in the fourth quarter of the year.

 Mercedes said that the plant will return to a two shift operation once it introduces the next generation of the S-Class in the summer of 2013.

"Workers manufacturing the S-Class will be reassigned to the C-Class assembly line during this period," Mercedes-Benz's parent company Daimler said in a statement on Wednesday.