Mercedes-Benz cutting production at Alabama plant

Seems like even luxury automakers are not safe from the U.S. auto market condition. Mercedes-Benz has confirmed that it will cut production at its Alabama factory starting next month. This is the first time Mercedes-Benz has cut production in the U.S. since it started producing vehicles in the U.S. 11 years ago.

The German automaker also plans on extending its Thanksgiving and Christmas shutdowns and will also cancel night shifts on six Fridays for the rest of 2008. The Alabama plant will also be shut down for five additional days around Labor Day.

In 2007, the Alabama plant produced 174,357 units of the GL-Class and M-Class SUV and the R-Class. Mercedes-Benz domestic truck sales were down to 5,090 in June, a 12 percent decrease from the same period during 2007.

Source: Automotive News (Subscription Required)