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Daimler to Lower Car Output in Sindelfingen
Daimler AG will reduce production at its assembly plant in Sindelfingen, Germany, because of slowing sales of its Mercedes-Benz cars in China and Europe, according to Reuters.
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Daimler AG will reduce production at its assembly plant in Sindelfingen, Germany, because of slowing sales of its Mercedes-Benz cars in China and Europe, according to Reuters.
An unidentified source tells the news service that the company is talking to union representatives about altering shifts at Sindelfingen, its largest factory. Daimler says only that it will align production with demand.
Stuttgarter Zeitung reports that Daimler has brought in mediators at Sindelfingen to help mend labor relations that have been badly frayed by shift plans for the fourth quarter of this year.
The company lowered its 2012 outlook for it Mercedes-Benz Car unit last week to an unspecified decline in operating profit from €5.2 billion last year. Daimler says it has launched a new cost-cutting initiative called "Fit for Leadership." The program aims to save at least €1 billion, according to news reports.
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