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Mercedes-Benz Exceeds Original Production Targets

21 May 1998

Mercedes-Benz Exceeds Original Production Targets at Tuscaloosa Plant

             More than 300 M-Class vehicles coming off line daily

    TUSCALOOSA, Ala., May 21 -- Mercedes-Benz U.S. International
(MBUSI) has reached a new production milestone -- ahead of schedule -- with
more than 300 M-Class vehicles currently rolling off the line daily at its
factory here.
    MBUSI announced last December that, due to the overwhelming worldwide
demand for the M-Class, it would increase production of its sport utility
vehicle by more than 20 percent, from a total of 65,000 units in 1998 to more
than 80,000 in 1999.  On Wednesday, almost one year to the day after its
official grand opening, the factory began producing 304 vehicles daily in two
ten-hour shifts.  The company did not expect to reach a 300 daily rate until
later this year.
    "I can't say enough about the motivation and hard work of our entire team,
including our suppliers," said MBUSI President and CEO Andreas Renschler.
"Our team members have really stepped up to the plate to meet the needs of our
customers.  Most had never built an automobile before, and now, they're not
only building 300 per day, but they're building quality into each and every
one.  Their commitment has enabled us to come a long way in such a short time.
This team can do anything."
    The production increase represents an additional $40 million investment
and will add 100,000 sq. ft. to the plant and 100 new jobs.  MBUSI is
realizing its production increase through greater productivity and efficiency,
including an approximately 10-15 percent reduction in the time it takes for a
vehicle to move from one production station to the next.
    Construction related to the facility expansion is underway throughout the
plant, including an increase in the number of production stations, logistics
bays and robots in the body shop; an increase in the number of robots in the
paint shop and additional logistics bays and inventory space in the assembly
shop.  A large portion of the construction and installation of robots will
take place during the plant's summer shutdown the week of June 29.
    Along with MBUSI's additional investment, the company's nine in-state
suppliers are collectively investing an additional $50 million to realize the
production increase, according to the Economic Development Partnership of
Alabama.  MBUSI uses a just-in-time and just-in-sequence production system,
with only 65 major suppliers, many delivering parts and components in modules
or sub-systems.
    After completing three production trials in 1996, MBUSI began producing
customer vehicles in January 1997.  The company began with a slow and
deliberate start-up, emphasizing training and quality, with the first customer
vehicle coming off the line on February 14, 1997.
    With approximately 1,350 team members on board, MBUSI is currently
producing the 3.2 liter, V6 ML320 for North America, Europe and other markets
throughout the world, as well as the 2.3 liter, 4 cylinder ML230 for Europe
exclusively.  Later this year, MBUSI will begin production of the 4.3 liter,
V8 ML430, in addition to the right hand drive ML320 for the United Kingdom,
Japan, Australia and New Zealand.