Mercedes C-Class Sedan Production In The U.S. Coming To An End
Mercedes-Benz just launched the new AMG GT Black Series this week, strengthening the brand’s grip in the high-power coupe segment. While all of this is happening, Mercedes’ parent company Daimler faces a financial problem. The German company is reported to have suffered a second-quarter operating loss of 1.68 billion euros ($ 1.91 billion) as a result of the terrible coronavirus pandemic.
This prompted the company to cut production and we all know which segment will be affected. With SUVs emerging as primary cash cows for Stuttgart, production of Mercedes sedans faces a halt – at least for North America.
According to a report by ReutersMercedes is seeking to stop production of the Tuscaloosa, Alabama C-class sedan. In addition, the automaker will also stop manufacturing the Class A in Aguascalientes, Mexico. Both plants will continue to make more profitable SUVs.
“Our systematic efforts to lower the company’s break-even point by cutting costs and adjusting capacity will need to continue,” said Mercedes-Benz CEO Ola Kaellenius in a statement in the release. Reuters report.
The low demand for cars during the pandemic is not the only adversity that Daimler has faced. It spent 129 million euros ($ 147 million) on buyouts and early retirement, as well as 687 million euros ($ 785 million) to restructure its global production of Mercedes vehicles.
In addition, Daimler also plans to save 2 billion euros per year through staff reductions, which equates to 20,000 jobs, according to Handelsblatt, a German newspaper. The company is also considering selling its plant in Iracemapolis, Brazil, while an extension to the Kekskemet plant in Hungary is more likely to face a roadblock.