Connect with us

News

Daimler To Stop Building Mercedes C- And A-Class Sedans In U.S. And Mexico After 2nd-quarter Loss

Published

on

Daimler-stop-sedan-production-us-mexico-mercedes

German auto-giant Daimler to stop building Mercedes-Benz sedans in U.S. and Mexico after second-quarter loss due to Covid-19 pandemic.

It said it will stop making the C-Class in Tuscaloosa, Alabama, and Mercedes-Benz A-Class in Aguascalientes, Mexico.





German auto-giant Daimler will stop building sedans in the U.S and Mexico as it seeks to cut cost after posting less than expected second-quarter loss.

The automaker had earlier announced it would cut 15,000 of its worldwide 300,000 jobs because profits were low in 2019.

The auto-giant said it will stop making Mercedes-Benz C-Class sedan in Tuscaloosa, Alabama. This plant will continue to produce fastselling Sport Utility Vehicles (SUVs).

It will also stop producing the Mercedes-Benz A-Class in Aguascalientes, Mexico. This plant will now focus on the GLB SUV model.

This move to cut cost comes after announcing a second-quarter operating loss of $1.91 billion last week ahead of the scheduled release date of July 23.

No details was given about when production of the A-Class and C-Class will cease in both Mexico and U.S.





Daimler was hurt by a slump in demand amid dealership closures and lockdowns due to the coronavirus pandemic.

Mercedes-Benz Cars & Vans unit posted an operating loss of $1.27 billion and an adjusted operating loss of $323 million.

The automaker said it recorded a drop in global sales of almost 19 percent (870,000 cars) in the first half of 2020.

Daimler also incurred $782 million in restricting costs to retool its global production network of factories producing Mercedes-Benz passenger cars.

Despite the impact of COVID-19 pandemic on the auto industry, Daimler Mercedes recorded the “Best Second Quarter” in its biggest market “China”.





Trending

Dunia Permainan Wukong 778 Naranjas del Campo Refueling Lives Maxi 188 Barcelona Quindio