Mercedes is considering moving the production of the company’s entry-level A and B-Class cars to developing countries. While both cars have been a sales success for Mercedes-Benz, their slim profit margins have Mercedes’ execs looking for ways to boost the cars’ profitability. The production shift would also allow the A and B-Class cars to enter into new markets.
Mercedes COO Rainer Schmückle said that the company is not looking to exit the small car market and will likely move production to Eastern Europe or Asia. Schmückle continued by saying the new cars would hit the market in 2011 and remain front-wheel drive.
According to AutomobilWoche, Mercedes hopes to see a 5-6% sales growth as its entry-level cars become available in developing areas. Mercedes’ biggest challenge will be pricing its cars competitively within the market.
Mercedes currently has four assembly plants in Southeast Asia and one in India.
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09/10, 11:26 AM
posted by:
A4
Maybe we’ll get a couple then?
09/10, 11:36 AM
posted by:
CTS DRIVER
how about china?
09/10, 11:40 AM
posted by:
LP640
china would mean that merc would suffer serious quality issues not that i’d buy an A or B class anyway
09/10, 11:42 AM
posted by:
jackjimturkey
It’s still a Benz
09/10, 12:21 PM
posted by:
1487_GM_SALES
It’s still a Benz and it looks like a Chevrolet Aveo. Won’t be as nice as an Aveo or priced like one I can tell you that!
09/10, 12:58 PM
posted by:
Commodore
GM_SALES – it won’t be as nice as an Aveo? it’s a xxxxing benz (an ugly one) and much more expensive than the aveo so it will definately be better.
09/10, 1:10 PM
posted by:
CTS DRIVER
as nice as an aveo? wow i really thought he already reached the pinnacle of stupid but somehow he found another step up.
09/10, 1:44 PM
posted by:
jackjimturkey
Aveo’s a pretty goofd little korean-built car. I’ve rented them twice, and they don’t have much trouble getting up to 85
09/10, 2:29 PM
posted by:
autonut
CTS, please don’t stymie intellectual growth! It’s been entertaining. have you seen Sling Blade with Billy Bob Thornton? It’s like reading Karl’s writings – entertaining.
09/10, 2:31 PM
posted by:
Carguy5
They should built them in alabama.
09/10, 2:59 PM
posted by:
Deanster
Good, they should do that because someone stupid enough to cough up that much $$$ for a Benz compact deserves crap quality to go with it.
09/10, 3:33 PM
posted by:
Jaguar XJ-S
Hey. If you guys want someplace stupid to build these things, do it in GM Sale’s garage. We could put him in charge to prove once and for all that GM is better than those crappy German cars. Besides, “The real folks are drooling over the Cadillacs and Buicks, not POS German crap.” Yeah. Keep on dreaming.
09/11, 2:19 AM
posted by:
Veda
“It’s still a Benz”
jackjimturkey needs a smack in the head as he has absolutely no clue what he’s talking about. Those cars didn’t even pass the US safety regulation and they weren’t able to bring them over to US. A Honda Fit is actually safer than the A Class.
09/11, 3:33 AM
posted by:
Got Handling?
The great brand sellout continues. Substandard quality, mass-market segment and now built alongside FIATs and Skodas in developing countries, this seems like real short-term thinking.
09/11, 11:05 AM
posted by:
jackjimturkey
Veda: How is it not still a Benz?
A chery COULD be safer, if you avoid being in the wrong place at the wrong time. You need a slap across the face with 9 I of LD
09/12, 8:13 AM
posted by:
1487_GM_SALES
It’s still just a Benz which stands for “Nazi crap” in this country.
As my man Bob Lutz all ways says, “This is our Country”. Get the hell out Germany, you don’t belong here.
09/13, 9:23 PM
posted by:
jackjimturkey
GM Sales: It’s OK for John Cougar Mellencamp to make a song for a Chevy truck commercial, but i lost respect for him when he put that song on an album
09/21, 11:32 PM
posted by:
BLISS
GREAT CHANGES
09/21, 11:38 PM
posted by:
BLISS
MERCEDES-BENZ ON NEW GROUND.