Mercedes Offers Buyouts as Prepares to Cut Alabama Output

Mercedes-Benz U.S. International Inc. is offering buyouts to all 4,000 of its employees at its Vance, AL, plant, as the auto maker prepares to trim production beginning Jan. 5.

Mercedes isn’t saying how many job cuts it is targeting or whether it will begin involuntary layoffs if it doesn’t meet its goal.

Terms of the buyout offers also have not been revealed, and Mercedes isn’t saying how much it will reduce production.

The auto maker is making the cuts in order to better align output with the current market, says spokeswoman Felycia Jerald says.

The Vance plant currently operates two assembly and paint lines and one body shop on a 2-crew system. It produces the GL and M- and R-Class utility vehicles. Production through September was down 7.9% from year-ago to 203,694 vehicles. U.S. sales for the three models combined were down 5.0% through September.

Jerald says the voluntary-separation offer is being made to both hourly and salaried workers, with employees having until Nov. 10 to apply for the program. However, only an undisclosed limited number of applications will be accepted.

The Vance plant will be shut down for the holidays from Dec. 16-Jan. 4. Mercedes expects to resume output Jan. 5 at the newly reduced rate.