Mercedes to return to 4-day workweek

Mercedes-Benz employees in Vance will be back to a four-day workweek, starting Monday, Aug. 10. The shorter workweek is scheduled to run until the end of October.

“We made this decision to avoid producing more vehicles than can be sold,” said Felyicia Jerald, a spokeswoman for Mercedes-Benz U.S. International in Vance.

“With this four-day production schedule, team members’ [employees’] hours will range from 30 to 36 hours over the next few months,” she said.

“Many of our team members have indicated that they prefer the four-day schedule. Although this isn’t an ideal situation, everyone seems to understand the conditions of the market and why these adjustments are needed.”

The Vance plant employs about 3,000 people, according to Mercedes.

Jerald said no layoffs are planned, though employees will work fewer hours.

Mercedes is the largest manufacturing employer in Tuscaloosa County. Its production, however, affects more than just its own employees. Area automotive parts suppliers tie their production and employment to the production at Mercedes. As Mercedes cuts its production and employees’ hours, many automotive suppliers in West Alabama are expected to do likewise.

The economic downturn has taken a toll on automotive sales including the sport utility vehicles made in Vance.

In the first half of the year, U.S. sales of Mercedes’ M-Class were down 39 percent; the GL-Class were down 44.5 percent and the R-Class were down 58.4 percent. All three types of vehicles are made in Vance.

U.S. sales of the SUVs made in Vance totaled 18,949 vehicles in the first half of this year, compared with 33,630 vehicles a year earlier, according to Mercedes. Sales figures for Vance-made SUVs sold abroad were not available.

Mercedes cut its production last year as the economy deteriorated and auto sales dropped. Last summer, it offered early retirement buyouts to its employees, and in October, it moved to a four-day workweek. It extended its Christmas shutdown from Dec. 11 to Jan. 20, when employees returned to the Monday through Thursday workweek. The Mercedes plant then had a four-week production shutdown from May 25 through June 22, when employees returned to a five-day workweek, but with reduced hours each day.