Mercedes-Benz slashes production of S-Class and EQS as sales fall

Mercedes-Benz will cut production of the S-Class and EQS due to falling demand for the automaker’s two most luxurious sedans.

Initially, the news of the reshuffle was just a rumor, but soon after, Mercedes confirmed the news to be true. Both the S-Class and the EQS are produced at the company’s “Factory 56” in Sindelfingen, which usually operates in two shifts. In October, it will be reduced to one shift.

Read: Mercedes electric car sales plummet, EQS sales down more than 50%

“We are continuously optimizing our production network and using its high degree of flexibility to react to fluctuations and changing framework conditions caused by geopolitical, micro- and macroeconomic developments and remain competitive,” Mercedes said in a German statement to Handelsblatt, which we translated. “We are therefore planning to adjust the vehicles in some areas of the Sindelfingen plant.”

Sales of the S-Class fell 22 percent in the first half of the year, with 28,100 delivered between January and June. It is unclear if or how Mercedes plans to compensate factory workers following the restructuring.

As Mercedes said in its statement, the plant responsible for producing the S-Class sedan and EQS is very flexible, and if the brand needs to switch back to a two-shift system in the future, it should be able to do so smoothly.

Some potential S-Class buyers may still be waiting for the facelifted 2026 model. That model will be released sometime next year and will feature revised styling, including newly designed headlights with star-shaped LED daytime running lights.