Partnership Will Allow Mercedes To Boost Sales Of Its Alabama-Built Suvs In Asia

[mogandave]

Partnership Will Allow Mercedes To Boost Sales Of Its Alabama-Built SUVs In Asia.

The Birmingham (AL) News (8/14, Kent) reports, "Mercedes-Benz is trying to gain a foothold for its Alabama-made luxury SUVs in fast-growing Asian markets through a new partnership with a logistics firm that has created at least 45 jobs in Tuscaloosa County and the potential for more." On Monday, Mercedes "and BLG Logistics outlined details of their plan to produce and ship SKD, or Semi Knocked Down, kits for the M-Class and GL-Class SUVs to India, Indonesia and Thailand. The auto parts kits will be assembled in those countries - and the vehicles sold there."

The Tuscaloosa (AL) News (8/14, Rupinski) reports, "Those countries have protectionist trade policies that include high tariffs, import fees and customs restrictions. Those have made the Mercedes sports utility vehicles made in Vance extremely expensive, even for luxury car buyers, in those countries," Marcus Schaefer, president Mercedes-Benz US International Inc.said. "And that has resulted in few Mercedes SUVs being sold in those nations. By shipping the auto parts kits to Mercedes' assembly plants in those countries, Mercedes will avoid the tariffs and other fees, allowing the company to sell the vehicles more competitively and attract more buyers." The automaker's "assembly plants in India, Indonesia and Thailand already assemble the automaker's C-Class, E-Class and S-Class vehicles from kits assembled at warehouses near Mercedes plants in other countries."

The Birmingham (AL) Business Journal (8/14, Poe, Subscription Publication) also covers the story.

[kartman]

The bit about Tariffs etc actually means MB will be able to make more profit when they sell the vehicles for the same price as a fully built up imports in Thailand anyway .

[JeffreyMcCollum]

The ones made in Thailand are way to expensive

The only way for me to buy more is lower the price 1m Bt or if I win the Lottery !

[mogandave]

I think the problem is that they can't sell enough, selling them at the same price point will not help that. If they assemble in TH and try to sell for the same price they'll sell even fewer.

[thailoht]

I think the problem is that they can't sell enough, selling them at the same price point will not help that. If they assemble in TH and try to sell for the same price they'll sell even fewer.

If the idea is to make some quick money, they should make a not-too-dumbed-down SUV (PPV) whose price is competitive with the Trailblazer, Fortuna & PJS and they will have a guaranteed winner......one that could take the old Fortuna crown and wear it for years, if they do it right!