Mercedes-Benz S-Class Production In Europe Reduced, Slowed Sales Blamed

It seems the flagship W223/V223 S-Class limousine is facing a sales slump that's prompting its reduced production in Europe.

According to Automotive News Europe, Mercedes-Benz has reduced production for its flagship S-Class limousine. Slowed sales paces was reportedly the cause for which, and one supplier even described the fallout of which as a ‘catastrophe’.

Though an iconic nameplate serving as the three-point star’s flag-bearer, the S-Class is enduring tough times of late. Deliveries of the flagship limousine totalled at just 16,900 units for the first quarter (Q1) of this year, and Mercedes-Benz has yet to release said model’s Q2 delivery figures too.

The initial figure reported marks a substantial drop of nearly 37%, and the delivery figure quoted also includes both the potent Mercedes-AMG and the opulent Mercedes-Maybach special variants. Additionally, combined deliveries of the S-Class, EQS, EQS SUV and GLS models have dropped by almost 23%, reportedly totalling at just 33,400 units.

Just 16,900 units of the current-gen S-Class were delivered in Q1 this year.

As a result, the three-point star marque has scaled back said flagship sedan’s production at its Factory 56 facility in Sinderfingen, Germany from two shifts to just one shift now. Historically, S-Class production at said facility has always run with two production shifts.

This was confirmed by a company spokesperson through a recent interview with German publication Automobilewoche. The source adds that Factory 56 has been underutilised for months due to this sharp decline in sales of the S-Class, and the switch to single-shift production takes effect soon.

Furthermore, Automobilewoche also quoted an interior components supplier who said that the S-Class’ scaled-down production in Germany is a ‘catastrophe.’ The reduced production is poised to affect a number of suppliers too, adds another source.

As a result of this slowed sales pace, production of the S-Class at Mercedes-Benz' Factory 56 in Sindelfingen, Germany has been scaled back from two shifts to just one shift.

The reduction to single production shift is unlikely to impact employees at Sindelfingen, who can be re-tasked to Hall 46 where the E-Class and GLC models are produced across a three-shift operation. However, temporary workers may be let go, said Automobilwoche’s source.

There is no certain way to predict when Factory 56 will return to a two-shift operation for the S-Class, though an upswing in sales typically occurs with a facelift and introduction of new tech. For the current-generation W223 and V223 model though, a refresh is planned for 2025.

Mercedes-AMG S63 E-Performance pictured. This potent performance special was launched locally earlier this year by MBM.

Closer to home, how this scaled back production in Germany will effect the Malaysia-made S-Class model remains unclear for now. As a refresher, Mercedes-Benz Malaysia (MBM) locally assembles (CKD) the V223-gen S580e plug-in hybrid (PHEV) variant at its plant in Pekan, Pahang.

Alongside which, MBM’s Pekan facility also assembles the S-Class’ electric twin the EQS 500 4Matic, as well as the fourth-gen (V177) A-Class sedan, second-gen (H247) GLA crossover,  fifth-gen (W206) C-Class sedan,  fourth-gen (V167) GLE SUV and, up until recently, the fifth-gen (W213) E-Class sedan.