For the first time, Mercedes-Benz will assemble SUV models outside of its Tuscaloosa, Alabama plant.
The German badge will now have assembly plants for its M- and GL-Class models in India, Thailand, and Indonesia. The SKD (semi-knockdown) kits from which the vehicles are made, however, will still come from Tuscaloosa. It is the expansion of the company's use of such kits that makes greater local assembly possible. A recent logistics center was created to facilitate the kits' dissemination.
Engines and transmissions will come from Mercedes's powertrain plant in Stuttgart-Untertürkheim.
"Our new SUV's are very popular with our customers," Dr. Wolfgang Bernhard, a member of the Daimler AG management team responsible for manufacturing and procurement for Mercedes-Benz cars and vans, said in a statement. "We expect high growth rates also in the emerging markets and therefore extend our local production. Thus, we open up new potential as part of our growth strategy."
Production of the M-Class will begin in India, Thailand, and Indonesia this year, with GL-Class production to begin in the Asian plants in 2013.
Mercedes has utilized kits for local assembly since the 1950s. The kits have been used to assemble Mercedes-Benzes throughout Europe, Central and South America, Africa, Australia and Asia. At the present time, there are assembly plants in Egypt (manufacturing C-, E-, S-, GLK-Class models), India (C-, E-, S-Class), Indonesia (C-, E-, S-Class), Malaysia (C-, E-, S-Class), Thailand (C-, E-, S-Class) and Vietnam (C-, E-, GLK-Class).
Mercedes says that quality and cost effectiveness of the kit model are ensured by careful standardization and the use of "tried-and-tested Daimler processes and systems".
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