Mercedes-Benz Announces Plans to Increase 1999 M-Class Production To Meet Strong Market Demands
15 December 1997
Mercedes-Benz Announces Plans to Increase 1999 M-Class Production To Meet Strong Market Demands
TUSCALOOSA, Ala., Dec. 15 -- Mercedes-Benz U.S. International
(MBUSI) announced today it will increase production of its highly-acclaimed
M-Class sport utility vehicle for calendar year 1999 to about 80,000 units to
meet the strong market demand from throughout the world. This represents a
more than 20 percent increase over the approximately 65,000 units which will
be produced in 1998.
The capacity increase will represent an additional investment of
approximately $40 million and will bring some 75 new jobs to the $300 million
plant. Still in its start-up stage of production, the Tuscaloosa County, AL,
plant currently employs about 1,300 people and has a capacity of approximately
65,000 vehicles.
"The response to the M-Class has exceeded our expectations, so much so
that we have been challenged to keep up with the tremendous demand from
throughout the world," said Andreas Renschler, president and CEO of Mercedes-
Benz U.S. International. "Our overriding goal is to satisfy our customers,
and what better way than to increase our investment and production
capabilities for the M-Class."
The production increase will be achieved through greater efficiency and
productivity, including an approximately 10-15 percent reduction in the time
it takes for a vehicle to move from one production station to the next.
The new investment from MBUSI will include the purchase of additional
equipment and machinery and an increase of about 100,000 square feet in the
body and assembly shops to accommodate the added equipment, inventory and
materials. Construction on the expanded shops will begin early next year.
Production of the 3.2 liter, V6 ML320 began early this year and vehicles
went on sale in North America in September. Since its market introduction,
the M-Class has won numerous awards, including Motor Trend 1998 Truck of the
Year, Robb Report "Top Cars for 1998," Consumers Digest "Best Buy," and the
very prestigious Canadian Car of the Year award. As of the end of November,
more than 10,500 ML320s were sold in the U. S. and Canada, and the company has
already increased its U.S. sales forecast for 1998 to 40,000 units, up from
the 33,000 originally planned.
The M-Class will go on sale in Europe and in other worldwide markets in
spring 1998. No decision has been made as to how the additional production
will be allocated.
SOURCE Mercedes-Benz U.S. International, Inc.
