Mercedes-Benz Cuts S-Class and EQS Production Due to Sales Slump

Both models of the German brand are produced at the facilities of Factory 56, which is located in Sindelfingen (Germany).

The current flagship sedan of the Mercedes-Benz brand — the seventh generation S-Class — was presented in early September 2020. Now the German manufacturer is working on an updated version (we recently published fresh photos of a camouflaged prototype). The electric liftback EQS was declassified in 2021, and updated in April of this year. Sales of both flagships leave much to be desired.

In the photo: the current Mercedes-Benz S-Class sedan

Thus, according to Jato Dynamics, in the first five months, European dealers sold only 3,240 S-Class units (32% less than in January-May 2023). During the same period, the Mercedes EQS was sold in the Old World market in the amount of 1,028 units (47% less than a year earlier).

A noticeable decline in these models is observed, including in one of the largest car markets in the world — in the USA. Thus, according to Goodcarbadcar.net, in the first half of 2024, 4,785 «esoks» were sold here (23.2% less than in January-June last year) and 1,791 «electric» (61.5% less).

As a result, the decline in sales led to the German company deciding to reduce the production volume of the Mercedes-Benz S-Class and EQS, the German publication Handelsblatt reports, citing representatives of the manufacturer. Recall that the production of both flagship models is established at the facilities of Factory 56, which is located in Sindelfingen (Germany).

It is reported that the plant currently operates in two shifts, but in October of this year it will switch to one shift. The company emphasized that it is worth considering the flexibility of this enterprise, which will allow for a quick increase in the number of cars produced if demand for the S-Class and EQS increases.

In the photo: the updated Mercedes-Benz EQS liftback

Let us recall that at the end of last month it became known that Mercedes-Benz is going to spend more than originally planned on the development of internal combustion engines, as well as on the restyling of the S-Class. Earlier, the head of the brand, Ola Källenius, noted that this year alone the brand intends to master 14 billion euros, which will be used to modernize the passenger car division. It is known that the manufacturer intends to bring its traditional power units to the «highest technological level».

At the same time, Mercedes does not abandon the previously announced «green» plans and projects, although some deadlines had to be shifted. Thus, it is expected that by the end of the decade, half of sales should come from hybrids and electric vehicles (previously it was assumed that this would happen by 2025). The manufacturer has not yet given up on building eight gigafactories for battery production, but emphasizes that they will start working “a little later.” The project to develop a new platform, which will form the basis of the brand’s future electric vehicles, is also still in effect.