Mercedes C-Class Sedan Production In The U.S. Coming To An End

A-Class production in Mexico to stop also.

Mercedes-Benz has actually simply introduced the new AMG GT Black Series today, strengthening the marque’s hold in the high-powered coupe section. While all of that is happening, Mercedes’ parent company, Daimler, is facing a financial woe. It’s reported that the German business has suffered a second-quarter operating loss of 1.68 billion euros ($ 1.91 billion) due to the fact that of the feared coronavirus pandemic.

This prompted the company to minimize its production output, and all of us understand which sector is going to be affected. With SUVs emerging as primary cash cows for Stuttgart, the production of Mercedes sedans is dealing with a halt– at least for The United States and Canada.

According to a report by Reuters, Mercedes is seeking to stop the production of the C-Class sedan Tuscaloosa, Alabama. In addition, the car manufacturer will also stop making the A-Class in Aguascalientes, Mexico. Both plants will continue to make more lucrative SUVs.

” Our methodical efforts to reduce the breakeven of the company by minimizing costs and adjusting capacity will require to continue,” Mercedes-Benz CEO Ola Kaellenius stated in a statement in the Reuters report.

The low need for cars throughout the pandemic isn’t the only misfortune that Daimler dealt with. It invested 129 million euros ($147 million) on buyouts and early retirement, along with 687 million euros ($785 million) in restructuring its worldwide production of Mercedes lorries.

Moreover, Daimler is also checking out saving 2 billion euros yearly through staff cuts, which is comparable to 20,000 tasks, according to Handelsblatt, a German newspaper. The company also thinks about selling its plant in Iracemapolis, Brazil, while an extension of the Kekskemet, Hungary plant will most likely to strike an obstruction.

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