Mercedes announced that by the end of this year it will cut production by 45.000 units. Models affected are Mercedes S-Class and E-Class as well as the SUV vehicles.

A company spokesman announced that Mercedes has reached agreements with its works councils for the plants at Untertürkheim and Bremen -- both in Germany – at the beginning of this week. He said other affected manufacturing facilities are in Sindelfingen, Germany, and the U.S. plant at Tuscaloosa, Alabama, as well as the smaller German plants located in Berlin and Hamburg.

This Daimler said two weeks ago it would cut production in response to sluggish demand, particularly in the U.S.

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