Mercedes C-Class May Fall On Its Sword for American-made SUVs
Mercedes-Benz is reportedly considering moving C-Class production out of America to make room on its Alabama assembly line for more high-margin utility vehicles. Despite being the brand’s best-selling sedan in the United States, Mercedes knows it has to acknowledge the public’s growing propensity for luxurious light trucks.
While ignoring the present doesn’t seem like the wisest of business decisions, the market’s current trajectory is no secret. People want crossovers and SUVs and it looks as though Benz will happily provide them, even if it means icing out the still-popular C-Class before the end of next year.
Automotive News, which broke the story, began by chronicling the automaker’s efforts to bring the sedan to the United States. Following the plan’s 2009 announcement, it took Mercedes nearly five years to actually get the thing ready for domestic production at its singular U.S. factory in Vance, AL.
From Automotive News:
It required considerable time and money to retool the U.S. assembly line and find local suppliers to finally launch the American C class in 2014. At the time, Mercedes estimated the move was creating 1,000 U.S. jobs.
Now, just five years later, the sedan appears headed out of America — a casualty of shifting U.S. consumer trends. According to industry forecaster LMC Automotive, C-class sedan production in Vance will end in the fourth quarter of 2020.
That scenario represents a new reality for a company that was long defined by luxury sedans and coupes and was once hesitant to sell a single light truck. It’s a different Mercedes. The company expects SUVs and crossovers to represent about 60 percent of its sales in the U.S. next year.
Presently, Mercedes-Benz U.S. International (MBUSI) is responsible for production of the GLS SUV, GLE crossovers, and the C-Class — all of which suffered lower-than-anticipated sales last year. While the C-Class remained the volume leader for 2018 with 60,410 deliveries, it has lost ground since 2013, when U.S. volume peaked at 88,251 units. The factory is also very close to reaching its maximum capacity, meaning MB would either have to expand the facility (something it’s already doing to support EV production) or move product around in order to escalate light truck manufacturing.
Mercedes-Benz declined to comment on the C-Class’ future, but it’s unlikely the sedan would simply be abandoned. The automaker already has a global production network for the model with factories in Germany, South Africa, and China (via its BBAC joint venture).
Still, the market’s swift shift toward crossover vehicles and SUVs should encourage Mercedes-Benz to be cautious in its planning. Back in 2009, when it initially wanted to bring C-Class production to America, the country still loved cars. Ten years on, the situation has changed. It’s not inconceivable to think it could happen again. Fortunately, there’s nothing about this alleged action that has alarm bells sounding on our end.
[Images: Daimler AG]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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How's the GLC experience? It was high on our list, but was just a tad too small. Incidentally my US born second gen ML350 was rock solid.I bought it used. I'd still have it today if my commute wasn't so long.Avg 18mpg premium was tough to stomach. When I bought it preowned my commute was 10 miles roundtrip.
I know industrial processes are common across the corporation and all, and it shouldn't matter. But there's just something not quite right about a premium German sedan made in Alabama. SUVs I'm OK with, because 'murica. It doesn't help that he have a MDX from Alabama that just had pitiful fit and finish issues in the beginning, but I suspect that's more a function of the move from the Ohio plant to a new plant. I hear there were quite a number of issues for several years for the C-class after moving production to Alabama from Bremen.