Mercedes-Benz To End Sedan Production In The U.S. and Mexico: Report

The automaker will focus on building crossovers instead

The Tuscaloosa, Alabama Mercedes-Benz plant. (Photos: MBUSA)

Mercedes-Benz in the United States and Mexico killing sedans to cut costs and streamline production.

The Mercedes-Benz A-Class and C-Class, built in the United States and Mexico, will stop their North American production. It’s not a terribly surprising move, as sales in the North American market have hit a low. Over the past ten years, crossovers, SUVs and pickup trucks have minimized sedan sales – across all brands. The current state of all automotive sales are suffering and Mercedes-Benz is suffering as well.  

Mercedes-Benz today reported a grand total of 70,221 vehicles for the quarter, a decrease of 17.2% over the same period last year. The German automaker sustained an operating loss of $1.91 billion in the second quarter. Add to that several dealership closures, COVID-19 projected sales deficits and a lower demand in sedans, the production stoppage makes more sense. 

Mercedes-Benz stated on the matter:

“Overall, we are encouraged by the continued demand and strong performance of our core models, especially the GLB, GLE and GLS models,” said Nicholas Speeks, President and CEO of MBUSA. “Our dealer partners are doing an incredible job to propel our business forward and deliver for our customers, while navigating many challenges and uncertainties present in the marketplace. We look forward to taking what we’ve learned and building upon our success in the months to come.”

A-Class currently built at its factory in Aguascalientes, Mexico and the C-Class, built in Tuscaloosa, Alabama, will cease. These plants will shift to crossover/SUV production, which are in much higher demand. The sedans will still be part of the Mercedes-Benz stable, for now. Basically, they will no longer be built in the United States or Mexico. The A-Class is still built in Germany, Hungary and Finland. Mercedes-Benz’s C-Class is still built in Germany, South Africa, Egypt, Brazil, Malaysia, Indonesia, India and China. 

Is this a harbinger for the further demise of the sedan?