REPORT: Sagging SUV sales, weak dollar could bring Mercedes C-class production to U.S.
Mercedes-Benz C-Class – Click above for high-res image gallery
Over the past two years, sales of SUVs from virtually all automakers have sagged deeply as fuel prices have risen and the economy has gone into the dumper. Mercedes-Benz is no exception, as sales of its ML, GL and R-class have dropped from a combined 152,500 in 2008 to just over 83,000 so far this year. At the same time, the U.S. dollar has lost significant value against most world currencies, including the Euro. The declining dollar makes it increasingly difficult for companies importing cars to the U.S. to make a profit, especially on low end models.
For Mercedes, this may be the perfect time to shift some production of its smallest model currently offered in the U.S. to its American plant, the sole global source of the aforementioned SUVs. The plant in Vance, Alabama could soon add production of the C-Class which is also the company's top seller in this market. At a media briefing in New York Thursday, CEO Dieter Zetsche acknowledged that a decision on U.S. production of the C-Class would be made soon. If it happens, it will give Mercedes a significant cost advantage on those cars. That cost advantage could allow Mercedes to reintroduce smaller, four-cylinder engines in the C, which is currently only offered with a V6 in the U.S.
Gallery: Mercedes-Benz C-Class
[Source: Automotive News]
Reader Comments (Page 1 of 1)
Mike7 6:49PM (11/13/2009)
Again! Twice in one evening! Yet, another case of autoblog not reading itself.
http://www.autoblog.com/2009/09/27/mercedes-benz-pondering-c-class-production-in-alabama/
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ipodrulz 6:56PM (11/13/2009)
Does that mean the quality of the C-Class would be brought down? Apart from the smaller engine what other differences does this make?
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Mike7 7:08PM (11/13/2009)
More than likely they'll still be built well. The C-Class is already built, without complain, in six other countries outside of Germany including Egypt, India, South Africa, Brazil, China, and Mexico.
Obviously DaMinority 10:00AM (11/14/2009)
Hmmm, maybe but the good news is, it will remain just as UGLY as it is now.
cit09 7:04PM (11/13/2009)
I am a big fan of the new Mercedes Benz C-class and I hope that their quality does not go down because of moving their production of this vehicle.
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Autblogist! 7:17PM (11/13/2009)
I hope it does ruin their quality, but it'll probably improve. If anybody remembers that last gen C-Class which wasn't long ago, they are a living nightmare to own.
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Mike7 7:21PM (11/13/2009)
"I hope it does ruin their quality"
Why wish that on any automaker?
Gavin 7:36PM (11/13/2009)
If they do this, could they build the C-class wagon here too...please?
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You're an idiot... 8:56AM (11/14/2009)
+1
Seriously if I could own any car right now it would be the C-63 Estate....
Blow away nearly anything that pulls up next to you at the light, and do it with the brand new toilet in the back you just bought from Home Depot.
skablaw 10:26PM (11/13/2009)
This may be just riding the very outer fence of relevance to the topic, but if SUV sales are sagging so much, then why are used Tahoes still so freakin' expensive? I want one and I just can't stomach the asking price. I mean it's a lot of steel for the money, but it hardly seems as if they're giving them away.
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Epsilon-Not 12:53AM (11/14/2009)
It seems like used prices have gone up (or not gone down as expected) in general- probably the economy pushing people who would otherwise have bought used, plus C4C getting rid of a lot of the older SUVs...