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

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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.

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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.

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