Mercedes-Benz to Cut Production of S-Class and EQS Due to Market Decline

TapTechNews August 1st news, due to the decline in demand in the luxury car market, Mercedes-Benz will reduce the production of the S-Class and EQS models, both of which are the top sedans under Mercedes.

TapTechNews noted that this news was initially just a rumor, but was later confirmed by Mercedes officially. Both the S-Class and EQS are produced at the company's Factory 56 in Sindelfingen, and this factory usually operates in two shifts. Starting from October this year, the factory will be changed to a single shift system. It is not yet clear how Mercedes will compensate the impact on employees caused by the reduction in production at the factory.

Mercedes-Benz stated in a statement: We continuously optimize the production network, and use its high flexibility to deal with the fluctuations and constantly changing framework conditions brought about by geopolitical, micro and macro economic developments to maintain competitiveness. Therefore, we plan to adjust the production of some models at the Sindelfingen factory.

In the first half of this year, the sales of the S-Class decreased by 22%, with a total of 28,100 units sold. Some potential S-Class buyers may also be waiting for the 2026 facelifted model, which will be unveiled next year and will feature a new styling design including new headlights with star-shaped LED daytime running lights.