Daimler to Shift Mercedes C-Class Production to U.S. [weak dollar, 4-cylinder models coming?]

WSJ.com / The Wall Street Journal ^ | December 2, 2009 | Christoph Rauwald / Sarah Sloat

[wolf78]

FRANKFURT -- German car maker Daimler AG said Wednesday it will shift production of its best-selling Mercedes-Benz C-Class model from its core plant in Sindelfingen, Germany, to its Bremen and U.S. facilities, as part of a wider move to bring production closer to main sales regions and reduce exposure to currency fluctuation.

"This step is essential for strategic and operational reasons, so that Mercedes-Benz remains competitive and can fully utilize future growth opportunities," said Chief Executive Dieter Zetsche.

The move underscores a trend among auto makers to ramp up local production to reduce exposure to currency fluctuations and benefit from lower costs.

A relatively strong euro against the dollar and pound has been a concern particularly for German luxury car makers Mercedes-Benz and BMW AG, which produce the vast majority of their vehicles in Germany but export many of these cars to the U.S., U.K. and China.

Because producing C-Class cars closer to the relevant markets will make Daimler more independent of exchange rates, it indirectly helps to protect employment at German sites, the car maker said. Production of the C-Class sedan for markets in Europe and of the other C-Class model version will in the future be concentrated in Bremen, and that plant will be the competence center for the series.

Overall, Daimler plans future C-Class production to be 60% in Bremen, 20% in Tuscaloosa, Ala., 10% in China and 10% in South Africa.

[wolf78]

This move might make it economically viable to bring back cheaper, more fuel-efficient 4-cylinder C-Classes to the US. Right now exchange rates are killing Daimler and they can only sell the more exclusive C300 / C350 V6 versions and the AMG V8 in the US.

[barb-tex]

Oh Lord! Won’t you buy me a 220D.
barbra ann

[jamaksin]

Or, a B180 Cdi, ...