DaimlerChrysler Begins Mercedes-Benz M-Class Production in Graz, Austria
27 May 1999
DaimlerChrysler Begins Mercedes-Benz M-Class Production in Graz, Austria
AUBURN HILLS, Mich. and STUTTGART, Germany, May 26 --
DaimlerChrysler officially began production of the Mercedes-Benz
M-Class sport-utility vehicle today in Graz, Austria. The addition of the
M-Class to the Steyr-Daimler-Puch plant, which also produces the Jeep(R) Grand
Cherokee, Mercedes-Benz E-Class with 4-MATIC all-wheel-drive and Mercedes-Benz
G-Class, is one of the first tangible benefits resulting from last year's
merger between Daimler-Benz and Chrysler Corporation.
Approximately 15,000 M-Class vehicles will be produced this year at the
facility, with production increasing to 30,000 next year. Steyr-Daimler-Puch
has been a DaimlerChrysler partner since 1979.
"Having already expanded manufacturing capacity by 30 percent at our U.S.
Plant in Tuscaloosa, we launched production of the M-Class in Graz to help us
meet the very large demand in Europe for this very successful model, and also
to cut customer waiting times," said Juergen Hubbert, DaimlerChrysler Board of
Management member responsible for the Mercedes-Benz Passenger Cars division.
"We're making full use of the production know-how and capacities that exist in
Graz. This synergy potential will enable us to supply our customers more
quickly and to achieve an optimal cost structure."
Manufacturing in Graz also means that DaimlerChrysler will be able to
expand annual M-Class production volumes from the current figure of
approximately 65,000 vehicles to more than 100,000. Capacity at the
Tuscaloosa plant in Alabama, where the M-Class has been produced since 1997,
has already been boosted from 65,000 to 80,000 units.
M-Class production in Graz will begin with the manufacture of the four-
cylinder ML230. This will be followed by right-hand and left-hand-drive
versions of the ML320 (V-6) and the ML430 (V-8). Production of the 2.7-liter,
five-cylinder, diesel-powered M-Class will begin later this year. All Graz-
built vehicles will be for the European market.
Long tradition of quality work in Graz
Production of the M-Class in Graz has been established at the Steyr-
Daimler-Puch plant (a Magna subsidiary), a company which has been a competent
development and production partner of DaimlerChrysler for many years.
The Mercedes-Benz G-Class has been manufactured in Graz since 1979, and
specialists at the plant cooperated in the development of the 4x4 system used
in the current Mercedes-Benz E-Class with 4-MATIC all-wheel-drive. The
facility began producing both the sedan and the station wagon versions of the
E-Class in 1996. Through 1998, over 20,000 E-Class vehicles and over 122,000
Mercedes-Benz G-Class vehicles have been manufactured in Graz.
In addition, since 1994 over 30,000 Jeep Grand Cherokees have been
produced annually on a separate production line at the plant to meet European
market demand. At a neighboring facility, the DaimlerChrysler's Eurostar
joint venture with SFT produces 55,000 Chrysler-branded minivans per year.
"When we decided that the M-Class, previously produced exclusively in
Tuscaloosa, was also to be manufactured in Graz," Hubbert explains, "we again
gave top priority to the issue of typical Mercedes brand quality. Just as in
our U.S. plant, all Mercedes-Benz standards on manufacturing and quality will
be specified and met in Graz, as well."
Because additional capacity was available in the Jeep Grand Cherokee
production system, parts of the manufacturing facility is used for both
vehicles. This will result in millions of dollars in savings, while still
guaranteeing the application of Mercedes-Benz production methods. Tools to be
used exclusively for one particular model are marked with the appropriate
color, and separate but stringent final quality checks for both models are a
key element of the brand separation policy.
Quality assurance top priority in Graz
Personnel from Mercedes-Benz U.S. International (MBUSI) in Tuscaloosa,
Alabama were heavily involved in establishing the production system in Graz
from the beginning. This will help ensure that the high quality standards of
the M-Class are upheld at the facility. MBUSI began training personnel from
Graz earlier this year, and will continue to work at the plant for some time
to ensure quality standards and assist in the day-to-day running of logistics.
All suppliers also meet Mercedes-Benz brand standards
Suppliers also have been involved in the development of the M-Class and in
the establishment of its production system from the very beginning of the
program.
The supply of parts in Graz will be coordinated by the Mercedes-Benz
Consolidation Center - America (MBCCA), which was opened near the Tuscaloosa
plant in Alabama. Parts and modules from over 65 suppliers are shipped from
the U.S. to Graz via Bremerhaven, Germany. From Bremerhaven, the parts will
then be transported directly to Graz by train. European deliveries such as
engines and transmissions will be delivered to both Graz and Alabama via the
Mercedes-Benz Consolidation Center - Europe (MBCCE).