Mercedes-Benz has been assembling SUVs at its Tuscaloosa, Alabama plant since 1997, but the southern plant could soon add the company’s popular C-Class model to its production list. The Tuscaloosa factory currently produces the M-Class, R-Class and GL-Class. Rumors of such a production shift first surfaced in September.
According to reports out of Germany, Mercedes brass is seriously considering moving some production of the company’s C-Class vehicle to the United States. The Mercedes-Benz C-Class is currently produced in Sindelfingen, Bremen, South Africa and China.
Mercedes execs are considering the move to safeguard against an unfavorable exchange rate. The C-Class is easily Mercedes’ most popular model in the United States, but the weak dollar is eroding the German automaker’s profit margin on the fast-selling sedan.
If given the go ahead, Mercedes would produce the next-generation C-Class – due out in 2014 – at the company’s Tuscaloosa plant. Mercedes is said to be targeting an 80,000 unit annual capacity, indicating some U.S. made C-Class models would likely be exported. The production shift could eliminate 3,000 jobs at Mercedes’ Sindelfingen plant, although it remains possible the Mercedes SL could fill the C-Class’ spot at the Sindelfingen factory.
11/30, 3:45 PM
posted by:
cocksterS
Uh oh. I hope this doesn’t mean that Mercedes top brass anticipates a weak dollar through 2014.
11/30, 3:46 PM
posted by:
scratchy
this considering is going on for quite some time…
11/30, 3:58 PM
posted by:
idrinorbarsaku
By all means, go right ahead! I wouldn’t buy a mercedes anyways!
11/30, 3:59 PM
posted by:
carstuff
through 2014? How about forever? We do not have much to offer the world anymore and China is getting tired of holding all those US dollars.
11/30, 6:46 PM
posted by:
Bimmer
Why do they call it M-Class if SUV called ML?
11/30, 7:06 PM
posted by:
johnnycanuck
So when does the distinction between import and domestic officially become blurred enough that we cease to give a sh*t?
11/30, 10:19 PM
posted by:
85ZingoGTR
I honestly thought this car was already produced here. Oh well. Why not? It is a hot seller. I see this car everywhere in my neck of the woods.
11/30, 10:34 PM
posted by:
cocksterS
Carstuff, like you, I usually tend to fall into the bearish category when it comes to projections about the US economy. That said, most neutral analysts will tell you that the US is still the world’s premier consumer economy, and will be for the near future. While China is outpacing the US as far as growth rate, and in many sectors, volume, the fact remains that the US still has the world’s largest percentage of per capita disposable income–not Scandanavia, not France, not China, not the UK. As for “getting tired of holding US dollars,” while many governments are raising a stink, there really is no other viable global reserve currency (at least right now), whether for reasons of central controlability, volume, or, in the case of the Yuan, the fact that it’s pegged to the dollar to begin with. Gold, too, is obviously out of the question, despite moves by countries like Mauritius. I’m going to avoid getting into whether commodities are on the rise because of a weak dollar, or whether the converse is true, but I think that the price of gold is artificially high right now, and that we’ll see a drop in prices in the near future. I’d hoped that this would mean a stronger dollar, and more purchasing power for US consumers, but apparently, Mercedes doesn’t feel that way. In the end, I suppose it’s all about the basics–job creation. I suppose it’s good that Benz is mulling a production shift to the US.
12/01, 3:08 PM
posted by:
pahammer
@JohnnyCanuck
I ceased giving one a while back. Cars are made here from parts made here by people here. Why do I care where HQ is?