Is Mercedes-Benz Taking Notes From BMW's and AUDI's Playbook?

Years ago when BMW decided to built the Spartanburg plant in the Carolinas, it was another one of those purists debates. You know, one of those "Rawr! ALL BMW's should only be made in Germany," kind of things.

Now it seems that other manufacturers are learning a thing or two from BMW and plan to move or increase production in the U.S. Take, for example, Audi who is planning on building a U.S. factory. My guess is that it would like to produce cars like the Q3, Q5 and Q7 here, with the possibility of eventually building the A4 stateside.

Now Mercedes-Benz is getting in on the act saying it plans to invest upwards of $2 billion in Alabama to build the C-Class, R-Class and G-Class right here in the U-S-of A.

The reason is simple -- supply chain. This move would shorten lead times for high volume models that sell particularly well in the U.S. market. This makes an excellent business case.

BUT, do you have any concerns? Does this move dilute the brands or is it really NOT going to have an impact on your thoughts of a brand?


Daimler AG, the parent company of Mercedes-Benz, said it plans to invest more than $2 billion to upgrade and retool its U.S. plant in Tuscaloosa, Alabama, in order to begin building the C-Class (from 2014) as well as the new generations of the R-Class and the G-Class models.

The latest announcement comes as Mercedes-Benz is engaged in a fierce battle with BMW for the top spot in the luxury car segment in the States, after 11 years of Lexus’ dominance in the market...

[Source: Carscoop]


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MercedesSL - 7/27/2011 8:37:01 AM

+4 Boost

Mercedes, and BMW the first to have a US plant (pretty sure they opened in the 90's. Mercedes are just expanding it. Audi is late to the game as usual.

Willis - 7/27/2011 8:07:17 PM

+2 Boost

How is opening a factory in another market considered "taking notes from someones playbook"? Mercedes-Benz opened up factories in South America in the 1950s and 1960s to produce commercial vehicles such as trucks and buses and a few sedans for the market in that continent. Audi and BMW at that point were only producing in Germany at that point. It can be said that at that time Mercedes was more of a global brand than BMW and especially Audi.

@ McNugget

Mercedes-Benz had AWD technology on the market long before Audi and BMW. In the late 1920s and 1930s Mercedes-Benz produced a set of military vehicles for the German Armed Forces that relied on either AWD or tank tracks on the rear wheels. These cars were called G3 and G4.

Joe_Limon - 7/27/2011 8:26:03 PM

+1 Boost

Audi 4cyls are horrid because the throttle isn't at all linear. You go from 0-80% throttle with only 10% throttle movement.

94geo - 7/28/2011 12:05:02 PM

+2 Boost

nug,

BMW, and Mercedes both brought AWD to the us in the 80's during the same period as Audi. In the 90's no one wanted a 4cylinder luxury car, they wanted 6 and 8 cylinders. Now people want smaller engines because of higher oil prices. If anything BMW, and Mercedes adapt to market trends more readily, which is why they both have been so successful for many decades.

poot66 - 7/28/2011 10:33:17 PM

+2 Boost

not to mention the fact that historically Audi is horrible. They were unreliable ugly pieces of crap. Now they at least have a reputation for looks, speed and luxury while still unreliable and horrific resale. They are nice but can't go toe to toe with BMW or Mercedes.

Yonder7 - 7/27/2011 10:25:24 AM

+2 Boost

MercedesSL: Correct info. Cause ML and R class are manufactured in US.

dumpsty - 7/27/2011 1:53:28 PM

0 Boost

I guess it really doesn't matter who was first to build a foreign-owned plant in the US.

The average consumer for any of the brands aren't really so concerned about where their vehicle was assembled, as long as it was built with the options they want.

MercBasher - 7/28/2011 1:15:45 AM

+2 Boost

Well actually not quite true, many folks would prefer a vehicle that was not built in Alabama. Just about anywhere else in the US would be fine but Alabama - pulleeze !