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.
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!
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