Mercedes C-Class Production Shifted To Alabama

by Cammy Corrigan

Published: December 3rd, 2009

mercedes c class production shifted to alabama

After writing about Spyker transferring production from the Netherlands to the United Kingdom, I thought I’d seen it all. Well, now I have. Production going OUT of Germany and into the United States. After much debating, Daimler have finally decided to switch some production from Germany to the United States. According to Reuters, roughly a fifth of Mercedes-Benz C-Class models will be built in Alabama by 2014, in hopes of protecting against currency fluctuations and maintaining profit margin. Naturally, the unions weren’t happy, in fact they downed tools in protest, claiming it was a “blatantly wrong decision.” Dr Z saw it differently, especially considering the move is said to be worth $100m in incentives from the state of Alabama.

“From a strategic and economic point of view, this step is absolutely necessary for Mercedes-Benz to remain competitive in the future and utilise its chances for growth,” Daimler Chief Executive Dieter Zetsche said in a statement on Wednesday. Not to mention a great chance to snag $55 million in training, as well as $20 million in state and local cash grants in addition to other Alabama tax abatements.

The union further claimed that 3000 jobs are at risk, which directly contradicted what Daimler’s personnel head, Wilfried Porth, said. He claimed that there would be no job cuts in Sindelfingen, where the C-Class is made, and that when the production comes online in the United States in 2014, it will create 1000 to 1200 jobs there.So, Daimler’s management are happy because this move will maintain their profit margins, the United States will have extra jobs & more manufacturing, and the stock market reacted favourably with Daimler’s stock price rising 0.3% to €35.19 per share. It seems the only people not happy are the unions, even though Herr Porth said there would be no job cuts. Honestly, there’s no pleasing some people!

#Alabama #Daimler #Germany #Mercedes

Cammy Corrigan

More by Cammy Corrigan

Comments

Join the conversation

2 of 18 comments

Porschespeed on Dec 03, 2009
What will this do for Benz build quality? Build quality is (mostly) about design and management. Personally, I wouldn't want to own any MBZ post-93/94. The gadget fest is neat. When it works. Which is to say, not often enough. W140 is the last S-class that lives up to the 'freight-train-panzerwagen' reputation. I hope they pull the quality back up to where it was, but the push to make MBZ a 'volume player' took a serious toll.

Like Reply
Nick on Dec 03, 2009

Based on my experience with a German built C-Class, moving production to 'Bama means their quality has nowhere to go but up. Regrettably, I doubt that it will as it has more to do with design and component sourcing than it does with the people putting it togtether (with some extreme exceptions). Pith these folks aren't getting something good to build.

Like Reply

Recent Comments

Jeff Self driving cars are not ready for prime time.
Lichtronamo Watch as the non-us based automakers shift more production to Mexico in the future.
28-Cars-Later " Electrek recently dug around in Tesla’s online parts catalog and found that the windshield costs a whopping $1,900 to replace.To be fair, that’s around what a Mercedes S-Class or Rivian windshield costs, but the Tesla’s glass is unique because of its shape. It’s also worth noting that most insurance plans have glass replacement options that can make the repair a low- or zero-cost issue. "Now I understand why my insurance is so high despite no claims for years and about 7,500 annual miles between three cars.
AMcA My theory is that that when the Big 3 gave away the store to the UAW in the last contract, there was a side deal in which the UAW promised to go after the non-organized transplant plants. Even the UAW understands that if the wage differential gets too high it's gonna kill the golden goose.
MKizzy Why else does range matter? Because in the EV advocate's dream scenario of a post-ICE future, the average multi-car household will find itself with more EVs in their garages and driveways than places to plug them in or the capacity to charge then all at once without significant electrical upgrades. Unless each vehicle has enough range to allow for multiple days without plugging in, fighting over charging access in multi-EV households will be right up there with finances for causes of domestic strife.