Daimler is reducing the working week at its largest Mercedes-Benz factory, as it becomes the latest carmaker to trim output in the face of falling sales.
The firm's Sindelfingen factory near Stuttgart in Germany will adopt a four-day working week from 12 January until at least 31 March, said the company.
It added that there may also be some three-day weeks.
German rival BMW has already announced a longer Christmas break at its main production facility in Munich.
'Serious slump'
Daimler added that it was also considering shortening hours at its other plants in Berlin, Bremen and Dusseldorf.
Its announcement comes after the German Association of the Automotive Industry said last week that new car sales in 2009 were expected to be the worst since the country's reunification in 1990.
Fellow German carmakers Porsche and Volkswagen (VW) have also warned of a tough sales environment.
Porsche recently said it was delaying its takeover of VW due to signs of a "serious slump" in global demand.
Meanwhile, VW said the current market situation was "very challenging indeed".
Across Europe, Toyota, Ford and Honda have all already announced a cut in working days.
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