Low dollar may see Mercedes increase U.S. production
#1
Low dollar may see Mercedes increase U.S. production
The U.S. is by far the world’s biggest car market so it already makes sense to manufacture vehicles locally. Compound this with a weak U.S. dollar, especially against the string euro, and it becomes apparent that importing cars from Europe for carmakers like Mercedes-Benz is simply too costly. Therefore it comes as no surprise officials are considering building more cars in the U.S.
Daimler exec Klaus Maier revealed to Automotive News reporters that if “the dollar relationship stays where it is, Daimler has to increase production activity in the US.” Maier also acknowledged that the exchange rate situation isn’t a complete surprise, which suggests a decision could be made much sooner that first thought.
Mercedes’ immediate future, however, will see the launch of a new green marketing campaign that will try to convince buyers to switch to cleaner cars despite the premium in price often associated. Maier said company research shows only 10% of luxury car-buyers are willing to spend extra on sustainable technology, something Mercedes hopes to change.
Daimler exec Klaus Maier revealed to Automotive News reporters that if “the dollar relationship stays where it is, Daimler has to increase production activity in the US.” Maier also acknowledged that the exchange rate situation isn’t a complete surprise, which suggests a decision could be made much sooner that first thought.
Mercedes’ immediate future, however, will see the launch of a new green marketing campaign that will try to convince buyers to switch to cleaner cars despite the premium in price often associated. Maier said company research shows only 10% of luxury car-buyers are willing to spend extra on sustainable technology, something Mercedes hopes to change.
#2
Importing vehicles from Asia (the current rage is India and China) is still a more economical decision. Building vehicles in America is nice, but still costly with labor and infrastructure.
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05-09-05 04:42 PM