After announcing that its plant in Alabama would be slashing production of its slow-selling SUVs, Mercedes-Benz has decided to cut overall output by more than 40,000 units over the next four months. While the slowdown of SUV sales are anything but surprising, even the top-of-the-line S-Class sedan has been hit with a downturn of sales. Reportedly, the German plant in Untertürkheim will also be reducing its output of V6 and V8 engines.

In order to remain profitable in these tough times, three-pointed-star prices are expected to rise and the brand's smaller models are being considered for the U.S. We'd imagine that Dr. Z and the rest of the board's future plans for Mercedes-Benz, which includes a switch to boosted engines, hybrids and electric cars, can't come soon enough. We also wouldn't be a bit surprised to see an even larger shift to diesel power from the German automaker.

[Source: Automotive News - sub. req'd]