Daimler to cut production at largest car plant

STUTTGART, Germany (Reuters) - Daimler is planning to cut production at its largest car plant, a source familiar with the situation told Reuters, as deteriorating markets in Europe and China hit sales of its Mercedes-Benz cars.

All production lines at the Sindelfingen plant are affected, and labor representatives and management are currently negotiating shift plans, the person told Reuters on Monday.

After warning last week on profits at Mercedes, Daimler said it would come up with a cost savings program, which sources had told Reuters would have a volume of over 1 billion euros($1.3 billion).

The S-Class saloon is doing especially badly, German paper Stuttgarter Zeitung reported in an advance copy of a Tuesday article, citing employee sources.

A Daimler spokesman declined to comment on current talks with staff representatives. "We are however looking at demand and will adjust our output to keep stocks at the optimum level," he added. ($1 = 0.7743 euros)

(Reporting by Hendrik Sackmann; writing by Victoria Bryan; Editing by Martin Zwiebelberg and David Cowell)