“The Stuttgarter Zeitung said some C-class production could be transferred to the carmaker’s plant in Vance, Alabama, from Sindelfingen, near Stuttgart, as part of a wider production shake-up planned by Daimler to reduce costs.”, reports Automotive News.
By moving a portion of their C-class production to the United States, Daimler AG could save approximately $95 million, primarily due to the savings in import duties, freight costs, and the and the hourly wage of American workers when compared to German workers; 30 euros as opposed to 50 euros respectively.
The plant in Vance, Alabama, currently manufactures M-, GL-, and R-class Benz models, and currently, has space to increase its production. The first eight months of production in that plant saw 66,710 units built, down from 136,138 at the same time last year. Merceds-Benz U.S. sales have been down across the board however, with the C-class, the best selling model in the U.S., only selling 34,432 units through August, compared to 50,593 through last August.
Daimler has not made any public announcements regarding a decision on the future of the C-class’ production location.
-By Stephen Calogera