Keeping The Moment-M
26 December 1997
Keeping The Moment-M
Mercedes-Benz M-Class Year End Review
1997 - Production Startup and North American Launch of the M-Class
1998 - Full Production, Worldwide Launch, Production Increase for 1999
TUSCALOOSA, Ala., Dec. 26 -- Much like the off-road
performance of its new rugged M-Class All-Activity Vehicle, Mercedes-Benz U.S.
International (MBUSI) and its Tuscaloosa, AL plant broke new ground in 1997.
Since Mercedes-Benz revealed the chassis of its M-Class at the Detroit
Auto Show last January and laid the foundation for its new sport utility
vehicle, demand for the product has exceeded the company's expectation. So
much so, that 11 short months later, and while still in plant start-up, the
company announced a production increase by more than 20 percent for 1999 to
meet the overwhelming worldwide customer demand.
"This has been an incredible year for our company," said MBUSI President
and CEO Andreas Renschler. "It's been the year of the results for the
M-Class. Everything we have been working for has culminated this year. The
most rewarding aspects of this year for me is to see satisfied customers in
their M-Class, and to see how far our team members have come. I am so proud
of this team, and I have faith they can do anything they put their minds to."
Indeed, this has been a banner year for MBUSI. Some of the more memorable
moments in 1997 included:
Milestones
Production of customer vehicles began in January, starting with the first
vehicle rolling off the line at the Job I Ceremony February 14. The company
began with a slow and deliberate ramp-up schedule which emphasizes training
and quality. The first official photos of the vehicle shortly followed.
In May, more than 6,000 people from over 60 countries came to the plant
for its grand Grand Opening and first public reveal of its M-Class. The event
truly lives up to its later description as a cross between a United Nations
Summit, Broadway performance and Southern Bar-B-Que.
Throughout the summer, more than 500 automotive journalists from
40 countries drove the M-Class throughout northern Alabama, in the first
worldwide launch of a Mercedes-Benz product held in the U.S.
The automotive industry and customers alike were surprised in September
when the starting price for the ML320 was announced at $33,950, much below
expectations. That same month, M-Class vehicles began arriving in
dealerships. By this time, some 300 dealers invested over $350 million to
help meet the criteria needed to become an M-Class dealer and were awarded
their franchises.
Also in September, MBUSI completed most of its initial hiring
(1,300 team members), and started a second shift in production. MBUSI also
became one of only three automakers in North America to be certified for
ISO 9001, an international standardization for manufacturers. The company
also received the Governor's Cup Award presented by the Southern Governors'
Association for its efforts to help develop the local and regional economy.
Shortly thereafter MBUSI teamed with local community colleges in Alabama
to start its apprenticeship program, designed to help enhance the skill base
in the state for automotive technology and industrial maintenance. The
apprenticeship program takes place in the Mercedes-Benz Institute located
on-site, adjacent to the plant.
The fall also marked the first showing of the M-Class internationally, in
September at the Frankfurt (IAA) International Motor Show, and in October at
the Tokyo International Motor Show. The M-Class section of the Mercedes-Benz
stands stayed very busy with journalists and the public. Shortly thereafter,
the M-Class received the prestigious 1998 Motor Trend Truck of the Year Award,
with many others to follow.
Toward the end of the year, the first group of German Trainers at MBUSI
began moving back to Germany. These trainers, in addition to both local and
international team members who work at MBUSI, are an important part of the
Daimler-Benz learning field concept, in that they will take back innovations
brought about in Tuscaloosa to other Daimler-Benz plants worldwide.
In December, less than four months after going on sale in North America,
MBUSI announced that it will increase M-Class production for calendar
year 1999, because of the overwhelming worldwide customer demand. This
increase -- from the 65,000 planned for 1998 production to the 80,000 planned
for 1999 -- represents an increase of more than 20 percent. To achieve this
production increase, the company will make a $40 million investment, which
will include the purchase of additional equipment and machinery and an
increase of about 100,000 square feet in the body and assembly shops, along
with 75 new jobs.
MBUSI plans to have produced more than 18,000 vehicles by the end of 1997.
Currently, the $300 million dollar plant is approximately 1 million square
feet.
The M-Class Sets a Benchmark in Safety and the Environment
Andreas Renschler spoke to the Society of Automotive Engineers Global
Vehicle Development Conference in December, and challenged the automotive
industry on safety and environmental issues relating to sport utility
vehicles. His message: Rather than responding to regulations, the industry
has to be more proactive in setting the pace for a safe and environmentally
friendly SUVs. He used the M-Class as an example of how this can be
accomplished: The M-Class rates among the best in class for fuel economy
(17 mpg in the city and 21 mpg on the highway) and has one of the few, if not
the only, certified LEV Engine (Low Emissions Vehicle) in the SUV segment. In
fact the 1998 M-Class, which comes off the line meeting emissions requirements
for all 50 states, already exceeds the environmental standards through the
year 2000.
In terms of safety, the M-Class sets a benchmark among SUVs in both active
and passive safety. Its low bumper and built-in "crumple zones" ensure that
it will not override smaller passenger vehicles during a collision.
Through extensive testing and development, the passenger cell is designed
so that in the event of a roll-over (or the vehicle lands on its roof) the
cell remains intact. It is also the first and currently only SUV with
standard side airbags, in addition to front airbags, ABS (Assisted Braking
System) and adjustable seat belt tensioners.
Acclaim for the M-Class
After only three months on the market, close to 11,000 M-Class vehicles
were sold in U.S. and Canada. In addition to the great demand shown by
customers, the M-Class has received critical acclaim from the media. Among
some of its awards and accolades, include:
AWARD / ACCOLADE SOURCE
First Place - "Hill and Gully" Comparison CAR AND DRIVER
Top Cars for 1998 ROBB REPORT
Truck of the Year MOTOR TREND
Best of What's New POPULAR SCIENCE
Best Buy CONSUMER'S DIGEST
Top 10 DETROIT NEWS
SUV of the Year NORTHWEST AUTOMOTIVE PRESS
ASSOCIATION
Top Car over $25,000 AAA
Car of the Year AUTOMOTIVE JOURNALISTS
ASSOCIATION OF CANADA
Best New Sport Utility AUTOMOTIVE JOURNALISTS
ASSOCIATION OF CANADA
Best New Utility Vehicle for 1998 KIPLINGER'S PERSONAL FINANCE
1998 Truck of the Year, Mexico AUTOMOVIL MAGAZINE
1998 Engine of the Year WARDS AUTOMOTIVE
Edison Best New Product AMERICAN MARKETING ASSOC.
The M-Class is also nominated for the 1998 North American Truck of the
Year, which will be announced in January at the Detroit Auto Show.
What's Ahead
In 1998 MBUSI will reach full production, introduce product variations to
support the worldwide launch of the M-Class and begin plans for a production
increase for the 1999 M-Class model line.
According to Andreas Renschler, "Our biggest challenges for 1998 will be
reaching full capacity at 270 vehicles per day by mid-year, maintaining our
high quality standards, and introducing the product variations to our
production line. We are looking forward to another dynamic and rewarding
year."
In addition to the current next-generation V6 engines used in production,
in 1998 MBUSI will begin introducing new variations to the production line,
including the V8, 4-Cylinder Engine and Right Hand Drive versions. In fact,
the engine plant in Unterturkheim is continuing production of the V6, and is
currently preparing for next year's product and engine variations.
In the spring, the M-Class will go on sale in Europe and other parts of
the world, with Right Hand Drive vehicles going on sale in the United Kingdom,
Australia and Asia next fall.
MBUSI: A Learning Field for Daimler-Benz, and an Example of its
Globalization
Established as a learning field for Daimler-Benz, the company continues to
explore the many innovations and benchmarks of the entire M-Class project. It
plans to share that knowledge, as applicable, with Daimler-Benz plants
throughout the world. Specific examples include: German trainers taking
techniques back to plants, production methodologies incorporated into other
plants (like the new A-Class plant in Juis de Flora, Brazil, which opens next
October), supplier integration and the use of modular construction, the
relative autonomy of the project team and its success, recruiting team members
from a variety of backgrounds and experiences, and creating a melting pot of
capabilities and cultures, which offered the "best of the best" ideas.
MBUSI is also an example of the Daimler-Benz globalization strategy, in
that it successfully established a new production facility, new product, new
methodologies and a new culture in the largest and fastest growing customer
market for its product segment -- sport utility vehicles.
The new year will undoubtedly see continued Moment-M for both Daimler-Benz
and MBUSI.
SOURCE Mercedes-Benz U.S. International