summarized from "Automotive News" on-line -
In a sign that even premium automakers are not immune from the U.S. market crunch, Mercedes-Benz confirmed today that it will trim production at its Alabama factory beginning in August.
In the 11 years since Mercedes began producing vehicles in the United States, this is the first time that production has been reduced because of the market and economic conditions, she said.
Mercedes management began informing the plant's 4,000 employees of the cuts this morning. Night shift employees will be told later today, Jerald said. Suppliers that provide components to the Vance, Ala., factory on a just-in-time basis also will follow the adjusted production schedule, she said.
A source, speaking on the condition of anonymity, said the Mercedes plant will close an additional five days around the Labor Day, Thanksgiving and Christmas holidays.
It was not disclosed how much volume will be reduced as a result of the cutbacks.
Sales of Mercedes domestic trucks fell to 5,090 vehicles in June, down 11.9 percent from June 2007. For the first six months, Mercedes sold 33,630 domestic trucks in the U.S., up 0.2 percent from the same period of 2007.
Last year, the Alabama plant produced 174,356 units of the GL- and M-class SUV and R-class crossover for the worldwide market.
