Daimler to cut production at Sindelfingen plant, says sources

Article by Anita Panait, on September 25, 2012

Daimler will slash production at its Sindelfingen plant near Stuttgart, its largest car factory, a source privy with the matter told Reuters. The planned production cut comes as dwindling markets in Europe and China affected sales of the carmaker’s Mercedes-Benz vehicles. The source told Reuters that all production lines at the plant will be affected, as labor representatives and management are currently discussing shift plans.

After issuing a profit warning for its Mercedes-Benz unit last week, Daimler said it would implement a cost savings program. Sources told Reuters that this would cost a total of over EUR1 billion ($1.3 billion). The cost saving program, however, does not include job cuts.

German paper Stuttgarter Zeitung reported that relations at the plant over shifts for the fourth quarter have become so tense that Daimler was forced to call in mediators to settle the dispute. The paper, citing employee sources, reported that the S-Class sedan was doing especially badly. A spokesman for Daimler told Reuters that that the carmaker is looking at demand and will adjust its output to keep stocks at the optimum level.

The spokesman said that Daimler planned to increase employee numbers at the plant by 250 people by 2014. Daimler chief executive Dieter Zetsche commented that the carmaker was gearing up for a "challenging environment" in Europe and China. He also raised concerns among investors in rivals BMW and Volkswagen.

It should be noted that China is a major source of profits for German luxury carmakers. Their solid performance in the Asian country has helped them stave off profit problems that are currently hounding volume carmakers in Europe. Mercedes, however, is more affected by the dwindling demand for cars in China than its rivals, which the Daimler CEO has partly blamed on their local sales organization.

Topics: daimler, plant

If you liked the article, share on:

Comments

Recommended

Porsche introduces the technologically advanced wheels with braided carbon fiber. These will be initially available on the 911 Turbo S Exclusive Series. Being the first car manufacturer to offer such...
by - August 23, 2017
All eyes were turned to the fuchsia pink bespoke McLaren 720S MSO at the 2017 Pebble Beach Concours d’Elegance Sunday. Surely, we can understand why. The one-off supercar, which was...
by - August 23, 2017
Hyundai Motor Group – including both Hyundai Motor and Kia Motors – has disclosed a wide-ranging plan to introduce 31 environment-friendly models in a new development roadmap that aims to...
by - August 22, 2017
Over a decade ago, Pagani took the Zonda to the Geneva Motor Show. The Zonda hypercar was then set to retire in 2013 together with the track-focused Revolucion. But here...
by - August 22, 2017
The newest Porsche Cayenne is scheduled be unwrapped by the end of the month after completing endurance tests worth 2.7 million miles. Since we are just a few weeks away...
by - August 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries