Why Mercedes-Benz Is Cutting Production of Its Flagship S-Class

Mercedes-Benz is cutting back on its flagship.

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The German luxury marque is reducing production of its long-running range-topper, the S-Class , according to Automotive News . The reason is simple: demand for the commanding saloon is down—way down.

It’s been a bad year for the S-Class, to say the least. During the first quarter of 2024, deliveries of the full-size sedan dropped off a cliff, falling nearly 37 percent to 16,900 units. To make matters worse, that number, low as it was, also included the high-performance AMG and ultra-luxurious Maybach derivatives of the vehicle. The automaker has yet to release delivery figures for the second quarter of the year, but combined deliveries of the entire S-Class family—which includes the sedan, its derivatives, the EQS, EQS SUV, and the GLS SUV—fell by 23 percent to 33,400,

Due to these disappointing figures, Mercedes has decided to make changes. The marque has confirmed to the newspaper that it is cutting production of the S-Class. It will now manufacture the vehicle in just one shift at its Factory 56 in Sindelfingen, Germany. The plant has reportedly not been operating at full capacity for months due to the drop in demand, but the change will go into effect next month.

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That’s not the only change in store for the S-Class. Mercedes is also hard at work on a mid-cycle refresh, according to Motor1.com . The seventh generation of the four-door only debuted in 2020, so it’s clear that the company feels that something is necessary to generate excitement for the vehicle. It’s unclear what this will entail, but CEO Ola Källenius said the company is pouring “a lot more” resources into the car than it usually does for an update. With Mercedes backing off its previous electrification targets, it will be interesting to see what this means for the company’s V-12 engine, which is currently only available in the Maybach S 680. Could the brawny mill become more prominent in the S-Class lineup?

Mercedes did not immediately respond to a request for comment from Robb Report .

The S-Class isn’t the only German-made full-size luxury sedan that’s struggling in 2024. Production of Audi’s largest four-door models fell by 46 percent to 5,788 units during the first six months of the year. Things are looking much better over at BMW, though. Demand for the 7 and 8 Series is actually up more than 11 percent to 30,249 vehicles through June.

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