Mercedes-Benz will reduce production of the S-Class and EQS due to declining demand for its two luxury sedans.

Initially, this production change was rumored, but Mercedes soon confirmed it. Both models are produced at the 'Factory 56' in Sindelfingen, which typically runs two shifts. Starting in October, this will be cut to a single shift.

“We continuously optimize our production network and use its high flexibility to react to fluctuations and changing framework conditions in relation to geopolitical, micro, and macroeconomic developments and to remain competitive,” Mercedes said in a statement to Handelsblatt.

Sales of the S-Class have dropped 22% in the first half of the year, with 28,100 units sold between January and June. It's unclear how Mercedes will handle worker compensation at the factory with this shift reduction.

Mercedes noted that the Sindelfingen plant is adaptable, and if needed, the brand can revert to two shifts in the future.

Some potential S-Class buyers might be waiting for the facelifted 2026 model, set to be unveiled next year, featuring new styling and star-shaped LED daytime running lights.

Source: Handelsblatt