Mercedes-Benz pondering C-Class production in Alabama?
Mercedes-Benz C-Class - click above for high-res image gallery
The C-Class is Mercedes-Benz's biggest seller Stateside, and a report in a Stuttgart newspaper indicates the company could be looking to stabilize the revenue from its bread-and-butter sedan. The C-Class is currently produced in Sindelfingen, Germany, and that makes it prey to currency swings on the trip across the pond. If Mercedes transferred production to its plant in Vance, Alabama, the company would also pay lower labor costs than it does in Europe.
The Alabama plant currently makes the M, GL, and R-Class vehicles. In March of this year, Mercedes allotted $290 million to expand the facility but didn't name any vehicle that would be added there, only saying it would be "future product." The German report mentioned that Mercedes could move some SL production from Bremen to Sindelfingen to make up for the shift, but a Mercedes spokesman said there is nothing in the works and nothing to comment on at the moment.
A German labor representative said that if such a move were to come, he would expect Mercedes to have a plan to save the 3,000 jobs that would be jeopardized at Sindelfingen, and protect production at Bremen as well. If Mercedes does move the C-Class here, it would become the first of the German players to build its highest volume car in the States.
Gallery: Mercedes-Benz C-Class
[Source: WGAL]
Reader Comments (Page 1 of 2)
nastinupe 5:18PM (9/27/2009)
Makes a lot of sense. Build the car that sells the best in that country... in that country. Saves on shipping, taxes, and labor costs.
I would have probably made that move a long time ago. In fact, any car that is going to sell the most in the USA, I would have built here as well. Why not? We buy it here, makes sense to make it here.
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Quantumphysics 5:56PM (9/27/2009)
When the E550 takes a nosedive in depreciation I'm buying one for my girlfriend.
PJ 4:26AM (9/28/2009)
+1. We could use the jobs, Mercedes!!
Besides, BMW's U.S. plants (and Ford's Mexican plants, and GM's Belgian plants, and so on) have proven that well-trained, well-paid, well-motivated labor does a good job of putting parts together, no matter where in the world they're doing it.
Jei 3:56AM (9/28/2009)
i don't think it's perceived value will take a hit. look at bmw. they build 5-6 model in the US and nobody's complaining....and it's jobs for this hard-hit enonomy.
you'd think M-B would have considered building some their n.a. best-sellers when DCX existed. They could have save enough profits to have done some drastically beneficial changes that may have saved the floundering corporation.
Lamborrari 4:20PM (9/27/2009)
"If Mercedes does move the C-Class here, it would become the first of the German players to build its highest volume car in the States."
Wrong. BMW built the 3-Series in their Spartanburg plant from March of 1995 until Z3 production took off. I believe the 318 was the first BMW to be produced at Spartanburg.
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Lamborrari 4:24PM (9/27/2009)
http://www.autoblog.com/2009/09/10/bmw-plant-in-spartanburg-sc-produces-1-5-millionth-vehicle/
YOU guys should know this...
318i, but an E36 BMW 3-Series nonetheless.
letstakeawalk 4:48PM (9/27/2009)
Likewise, VW built Rabbits (Golfs) at its New Stanton, PA plant, starting in 1978.
blackEldo 4:33PM (9/27/2009)
While the short-term financial gain seems like a strong selling point for this idea, there's a long-term problem. Only in the last few years has MB realized that building their cars to quantitative standards only devalues brand equity and product quality. They can only be successful developing and building based on qualitative standards. They need to be able to justify the price premiums with a quality product, and building in Alabama may not be the best way to accomplish this.
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BassClef 4:26PM (9/27/2009)
Nice! Folks at the Vance plant have been pretty nervous here lately about whether or not it's even going to stay open. Mercedes moving the C-class there would still those fears. Not to mention help justify the tax breaks from Montgomery.
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Miguel 5:15PM (9/27/2009)
I just love that your avatar has a treble clef instead of a bass clef, given your name.
BassClef 10:02PM (9/27/2009)
It's to declare my love for the lower instruments. Notice how the treble part is told to shut up. :P
fixitfixitstop 4:30PM (9/27/2009)
YOUR SPAM IS UNWANTED HERE (or anywhere).
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Turkey Pie 7:10PM (9/28/2009)
German cars made outside of Germany have had quality issues.
-M class, Z4, Jettas, Beetles, Tourags, Q7, Golf to name a few built outside the country.
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mbslrm 4:43PM (9/27/2009)
How good is the build quality of the current trucks coming out of Vance?
If Mercedes-Benz can maintain the same/higher level of quality at a lower cost, why not...
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Stugots 4:58PM (9/27/2009)
The C-class is not made in Sindelfingen, but in the plant in Bremen!
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Stugots 5:00PM (9/27/2009)
I stand corrected, they're built at both sites.
Patrick 5:23PM (9/27/2009)
Will they lower the price to reflect the cost savings? And add a 6spd manual to the C350? If not, who cares.
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letstakeawalk 6:40PM (9/27/2009)
M-B shareholders care. They expect M-B to return a profit by minimizing costs and maximizing revenue. The better the profit, the better for the shareholders...
cool_ozzyfromkalush 6:30PM (9/27/2009)
YEEHAW!!!
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oZ 6:55PM (9/27/2009)
Wow, too bad they didn't think of that while they were raping the corpse of that American car company.
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