Porsche to Produce Mercedes-Benz Sport Utility Vehicle

08/20/96

Reuters has reported that the German magazine Spiegel said Mercedes-Benz and Porsche have reached an initial agreement that will have Porsche make a high-end version of its sport-utility vehicle.

Mercedes has called its sport-utility vehicle the M-class, and will debut it in the fall of 1997.

Spiegel reported last Saturday that the two Stuttgart-based companies will form a joint venture firm to control the production of Porsche's version of the vehicle, which should begin in 1998 or 1999.

The automotive trade press has reported plans for a possible joint venture, including one story in Automotive News that said Mercedes plans to make 65,000 of the new sport-utility vehicles at its U.S. plant in Vance, Alabama.

Spiegel reported that Porsche's version of the four-wheel drive vehicle will be sold outside of the U.S. The magazine said that Michael Bassermann, chief of Mercedes in North America, informed U.S. dealers of Mercedes-Benz's plans to cooperate with Porsche.

Paul Dever -- The Auto Channel