Daimler Cuts Production at Mercedes' Alabama Plant
July 24, 2008
On the same day that Daimler AG reported a 25-percent drop in earnings, the German automaker said it will cut production of Mercedes-Benz SUVs and crossover/wagons made at its Alabama plant through the rest of the year.
The automaker said the plant, which runs on two shifts, will reduce daily production of the GL- and M-Class SUVs and the R-Class crossover/wagon. The automaker didn't say how much production would be cut at the plant, which built 174,000 vehicles last year.
While Mercedes' first-half sales have been just a tad higher than a year ago, sales by model have been unevent. The redesigned C-Class has been enormously successful. However, sales of the odd minivan-like R-Class dropped 30 percent in the first half. Sales of the GL dipped 3 percent.
The Alabama plant, which opened in 1997, employs nearly 4,000 people. It has never cut production and even now, jobs will be maintained, the company said.
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