Daimler is continuing to reorganize its production as the automaker seeks to get rid of excess capacity and implement deeper cost cuts.
In the latest moves, the company will stop halt U.S. output of the Mercedes-Benz C-Class sedan in Tuscaloosa, Alabama, leaving the plant producing SUVs only, it said.
Daimler is shipping production of the compact sedan back to its plant in Rastatt, Germany, supply chain and dealer sources told Automotive News, a sister publication of Automotive news Europe.
The automaker will also stop producing the Mercedes A-Class in Aguascalientes, Mexico, to instead focus on the GLB, a newer, higher-margin SUV model.
Daimler has already halted plans to expand its factory in Kekskemet, Hungary.
Earlier this month, the automaker said it is seeking a buyer for its factory in Hambach, France, that builds Smart cars. Petrochemicals giant Ineos said it is considering buying the plant to build the Grenadier SUV, its rival to the Land Rover Defender.
Daimler also is considering whether to sell its plant in Iracemapolis, Brazil, the German business paper Handelsblatt reported, citing company sources.
The company also is discussing options for its plant in South Africa, the paper said.
Daimler is reviewing its portfolio of niche cars, such as the coupe and convertible variants of the Mercedes C-Class and E-Class, as well as the compact B-Class, Handelsblatt reported.
Reuters and Bloomberg contributed to this report