Mercedes cuts production of the S-Class & EQS

In response to an enquiry from the German publication Handelsblatt, Mercedes-Benz confirmed that production of the electric model and the conventionally powered S-Class is to be switched from two-shift to one-shift operation in the fourth quarter of 2024. The online portal mbpassionblog also previously reported on this. Specifically, the EQS (since 2021), the new S-Class, its long-wheelbase version and the Maybach variant of the S-Class will be built in Factory 56. All of them cost more than 100,000 euros even in their basic configuration.

To put this in context: Mercedes’ Factory 56 was built specifically for the production of the S-Class and the EQS. The “marriage”, in which the drivetrain and body are joined together, is known as the “Fullflex Marriage” in the Factory 56. It consists of several modular stations so that pure combustion models, plug-in hybrids and the EQS can be manufactured together on a single line on a purely electric platform.

However, it has been apparent for several months that sales of Mercedes’ top-end models are weakening. In the first half of 2024, sales fell by 22 per cent to around 137,000 vehicles – although the company does not differentiate between drive types. It therefore remains to be seen how high the electric EQS’ share of sales is.

Handelsblatt also writes that the cuts will have “no impact” on the core workforce of 1,500 employees at Factory 56. Conversely, however, this also means that the many temporary workers at the plant will probably have to fear for their jobs.

Mercedes-Benz recently revised the EQS. For the 2024 modification year, the electric flagship will not only be given a refreshed look and upgraded equipment. The company also made improvements to the technology: the battery will be larger, for example. However, the sometimes expected switch to an 800-volt voltage level has not materialised in the “extensive update”; the EQS continues to operate on 400 volts.

With the model upgrade, Mercedes wants to accommodate its customers and thus counteract crumbling sales. According to a report in the Handelsblatt newspaper this spring, Mercedes had hoped for EQS sales of 50,000 vehicles per year, but probably won’t even manage half that – partly due to weak sales in China. The revised EQS has been available to order since April 2024.

handelsblatt.com, mbpassion.de (both in German)