The diminishing value of the U.S. dollar, most notably against the Euro and Yen, is causing plenty of grief for foreign automakers. While the US market has been in the tank for the past two years, it still remains a major market for companies like Audi, BMW and Mercedes-Benz. All three brands have been looking at ways to relieve some of the exchange rate pressure and Mercedes has decided that more "dollar zone" production will be part of the solution.
When the next generation C-Class rolls out in 2014, German production will be consolidated at Daimler's Bremen factory while units for the North American market will be built in the U.S. There's been no announcement about where production will take place, but an expansion of the SUV factory in Alabama is one possibility. On a related side note, part of the reason the Premium German brands have recently avoided selling four-cylinder versions of their entry-level models in the States has been the exchange rates and the associated lack of profitability. With new CAFE rules coming, it's likely that we'll be seeing more moves like this in the next several years.
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Decision on production of next-generation C-Class will improve competitiveness
Production of the C-Class as of 2014 in Bremen and the USA will secure growth opportunities and increase profitability
Attractive job possibilities for the employees affected at the Sindelfingen plant
Next generation of E- and S-Class to remain in Sindelfingen
Management and Labor Council share clear goal of further efficiency improvements
Resulting possibility to do without layoffs for operating reasons in Sindelfingen until 2020