The Mercedes S-Class, once the undisputed king of luxury sedans, is facing a reality check as sales continue to slide. In the first quarter alone, deliveries nosedived by nearly 37%, with only 16,900 units, including the AMG and Maybach versions, finding new homes. While Mercedes has kept quiet on second-quarter figures, it’s clear the trend isn’t good. Combined deliveries of the S-Class, EQS, EQS SUV, and GLS dropped by almost 23%, with just 33,400 cars sold.

Given these numbers, it’s no surprise that Mercedes has confirmed it’s scaling back production of its flagship model. A spokesperson told Automobilwoche that the S-Class will now be built on a single shift at the state-of-the-art Factory 56 in Sindelfingen. The plant, designed to be a beacon of efficiency, has been running well below capacity for months due to the sharp decline in demand.

One supplier of interior components described the cutback as a “catastrophe.” The move to a single-shift operation will kick in after the August break, with some workers being reassigned to other roles within the factory, which also produces the fully electric EQS.

Meanwhile, Mercedes’ rivals are experiencing mixed fortunes. BMW saw demand for its flagship 7 Series and 8 Series models rise by 11.4% in the first half of 2024, with 30,249 units sold by June. Audi, however, isn’t faring as well. Sales of its D-segment cars slumped by 16.5%, with only 8,487 units moved. Production of these large Audis plummeted by a staggering 46% to just 5,788 units in the same period.

Mercedes is working on a mid-cycle update for the S-Class, with CEO Ola Källenius stating the company is investing “a lot more” than usual for a facelifted model. This comes as the automaker shifts focus back to refining its combustion engines, despite its ambitious EV goals. Of the big three German luxury sedans, the S-Class remains the only one to offer a twelve-cylinder engine, albeit exclusively in the ultra-luxurious Maybach variant.

It’s worth remembering that not long ago, the S-Class range included a Coupe and Convertible. Both have since been dropped, with their roles indirectly filled by the new 2+2 GT Coupe and the SL duo. The S-Class is clearly navigating turbulent times, and it remains to be seen if the upcoming updates can steer this luxury icon back on course.