German automaker Daimler AG will cut work hours at its largest domestic plant for at least 2 1/2 months amid flagging demand for its cars, Daimler's works council chief Erich Klemm said Monday.

In addition to the cuts at the Mercedes plant in Sindelfingen, Daimler will shorten the workweek to four days - and at times three days - and will lengthen holidays from January 12 until at least March 31, Klemm said.

The output cut at Sindelfingen comes after Daimler has already said it would lengthen its Christmas stoppage for all of its 14 production facilities in Germany.

The hours reduction is a result of the world's economic situation, which caused the company's global car sales to fall 25 percent in November compared to a year ago.

Though Daimler is expected to sell fewer cars this year than next, a labor deal protects Daimler workers from layoffs until the end of 2011.

The output cut at Sindelfingen comes after Daimler has already said it would lengthen its Christmas stoppage for all of its 14 production facilities in Germany.

The hours reduction is a result of the world's economic situation, which caused the company's global car sales to fall 25 percent in November compared to a year ago.

Though Daimler is expected to sell fewer cars this year than next, a labor deal protects Daimler workers from layoffs until the end of 2011.