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ReprintsMercedes cuts ’08 output by another 35,000 units
Matthias Krust
October 6, 2008 - 5:20 am ET
STUTTGART -- Mercedes-Benz will cut production by another 35,000 units over the next few months in the face of steadily weakening sales in Germany and abroad. The automaker announced a cutback of 45,000 units over the summer, bringing the total reduction for the year so far to 80,000 units. Except for the C class, sales of all Mercedes model lines are down for the year. "The sales department once again has adjusted the figures downward," a Daimler executive told Automotive News Europe's sister publication Automobilwoche. Sources say the luxury automaker will shut down broad swaths of its Sindelfingen plant in suburban Stuttgart between Dec. 6 and Jan. 18. The S, E and C class as well as some other models are produced there. According to insiders, Mercedes has been producing vehicles and stockpiling them for months. They are being stored at the company's truck facility at Woerth for now. Analysts question whether a Daimler profit warning will follow in the next few weeks. The company lowered its 2008 profit forecast by about 1 billion euros, to 7 billion euros (about $9.7 billion), over the summer. "We can't change the market situation," Daimler CEO Dieter Zetsche said at the Paris Motor Show in response to a question. "The only thing we can do is bring production into harmony with demand." The financial crisis is reflected in the automotive business, he said, and many markets are registering sharp declines. "We can't escape this," Zetsche said. "But I am still assuming that we will boost sales in 2008." |
You can reach Matthias Krust at mkrust@craincom.de.
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