Monday, October 29, 2012

REPORT: Mercedes-Benz reorganizes the S-Class production schedule

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The European market is facing yet another major hit after the economic downturn began in late 2008. The situation is worsening constantly, as clients lose their initial capabilities to afford buying a personal vehicles. Not only the mass automobile producers are suffering from this illness, but also the premium constructors are faced with the challenge of staying afloat and not deepening into the crisis.

After parent company Daimler officially announced it has revised the profit figures for the end of 2012 and the next year, executives from the Mercedes-Benz plant in Sindelfingen have taken decision to reduce the current production plan for S-Class W 221 generation and cut away one shift in order to meet the declining sales for the high luxury model.

According to market researchers JATO Dynamics, the German carmaker managed to sell only 5,227 units in eight months during 2012, which is 27 percent less compared to previous year figures. Even though the S-Class brings Mercedes-Benz the highest revenue vale per each unit sold, the Sindelfingen facility will now focus most of the activity on the production of C-Class models.

It is obvious that some mistakes have been made in postponing the launch of a new generation S-Class. Initially, the W 222 was programmed to be officially unveiled at the Paris Motor Show, but the current crisis led German bosses to act cautiously and demand a delay, to make sure everything is entirely perfect with the new luxury limousine.

According to recent rumors, the new S-Class could show up at the Los Angeles Auto Show at the end of November at a private event where select automotive journalists and global dealers will be invited to get a preview. However, others speculate the S-Class will be first introduced at next year's NAIAS Detroit during the press days, while the public premiere will take place at Geneva automotive salon in March 2013.

No matter which path is approached, we will not be seeing the new Mercedes-Benz S-Class any time soon. However, one argument is certain: the Stuttgart-based carmaker needs to bring the new W 222 once and for all, if they want to avoid more headaches in the future. The future now rests on the shoulders of the upcoming S-Class generation, already seen as the major revolution since the birth of the automobile in 1886.

P.S.: We get the information that the most prominent Mercedes-Benz CEOs in the world, including Steve Cannon, have already got their first look at the new vehicle. The head of the MBUSA division is quoted as tweeting on his official Twitter account: "Incredibly successful dealer meeting in Vegas! We showed the all-new S-Class: the sum total of 126 years of leadership!"


Info Credits: Automotive News of Europe

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