Made-in-India Mercedes set to drive into US - Mercedes Benz SLK Forum
Off Topic Anything but SLK talk. Please Note that religious and political discussions are not allowed....

LinkBack Thread Tools
#1 Old 09-26-2018
Premium Member
Join Date: Sep 2010
Location: Phoenix
Vehicle: 1999 slk 230
Other Toys: 1966 Mercedes Heckflosse
Posts: 14,574
Chats: 0
Mentioned: 15 Post(s)
Tagged: 0 Thread(s)
Quoted: 530 Post(s)
Thanks: 1,120
Thanked 1,420 Times in 958 Posts
(Thread Starter)
Made-in-India Mercedes set to drive into US

While the U.S. industry is transfixed on the rise of China as a critical market and manufacturing base, another Asian country is stepping onto the stage: India.

Mercedes-Benz will begin importing its best-selling vehicle, the GLC compact crossover, into the U.S. from its plant in western India, Automotive News has learned.

The German luxury automaker joins Ford Motor in tapping India as a source for U.S. vehicles, underscoring the subcontinent's rapid ascent as an auto export hub. Ford last year began importing its EcoSport subcompact crossover from Chennai.

General Motors, meanwhile, thwarted in its efforts to develop an Indian sales base, has converted its Indian automaking capacity to an export base, but it has given no indication that it would export to the U.S.

The sudden appearance of vehicles from India comes as U.S.-Chinese trade relations roil over punitive tariffs on vehicles and auto parts. It also occurs as the Indian domestic market struggles and Indian factories are faced with overcapacity.

Deliveries of the Mercedes GLC, built at the automaker's plant in Pune, will arrive in the U.S. next month, Mercedes-Benz USA spokesman Rob Moran confirmed last week.

"The SUV GLC is in great demand worldwide," Moran said. "Therefore, Mercedes-Benz uses the capacities of its global production network on four continents. This also includes the Mercedes-Benz plant in Pune."

Mercedes has informed NHTSA of its import plans.

The notion of importing vehicles from India arose a decade ago when Mahindra & Mahindra — at that time an Indian military vehicle builder — inked a deal to export a somewhat rough-hewn small diesel pickup to the U.S. through an independent distributor. Retailers asked for numerous quality improvements before they could sell the pickup, and the import deal collapsed before the vehicle was certified by U.S. regulators.

The picture has changed significantly since then.

The GLC is the highest-selling luxury compact crossover in the U.S. and the top-selling model across Mercedes' brand lineup.

GLCs sold in the U.S. are currently built in Bremen, Germany. There are no plans to produce the crossover in the Mercedes factory in Vance, Alabama.

Analysts believe India has a shot at playing a bigger role now.

Mercedes' move could turn the spotlight onto its auto manufacturing potential, predicts Brian Johnson, managing director at Barclays Capital.

"It will help establish supply chain and production infrastructure that can meet North American and European quality standards," he said.

But importing vehicles from India to the U.S. remains an "experiment" more than a trend, Johnson said.

"India has been seen by the global automakers as a difficult place to establish a quality supply chain," he said. "This could very well be an effort to learn about India as an export hub."

Still, India's auto sector has significant growth opportunity as middle-class incomes rise and consumers gravitate from two-wheelers to cars and now crossovers.

"It's very possible that there could be more capacity development for light vehicle in India," said Richard Hilgert, senior equity analyst for Morningstar. "With the increase in capacity, there could be opportunities for export."

Exports could become a fundamental part of the equation for automakers with Indian plants. So far, some automakers are finding it challenging to support auto plants there with domestic sales only.

If production capacity cannot be sustained with domestic demand, it makes sense to shift that capacity to exports, Johnson said.

Ford 'key pillar'

That is clear at Ford's Indian subsidiary, where exports, not domestic sales, are driving production volumes. "Export is one of the key pillars," Anurag Mehrotra, president and managing director at Ford India, told the Indian newspaper Business Standard. "It gives us economies of scale allowing us to bring more features at competitive costs for the Indian market."

The situation is even clearer for India's luxury vehicle operations.

Exporting several thousand GLCs will be helpful to the profitability of the Mercedes' Pune plant while meeting rising U.S. demand for the vehicle, said Sam Fiorani, vice president with AutoForecast Solutions.

The cost of shipping GLCs to the U.S. from Pune is higher than from Bremen, but the overall economics are tempered by other costs, including lower labor rates in India.

The move could also help automakers hedge against trade troubles around the world. The industry is witnessing rising uncertainty around the potential of U.S.-imposed import tariffs. The Trump administration has threatened a 25 percent tax on cars that come into the U.S. from the European Union. And the road to China, a major global auto manufacturing center now, is already getting bumpier thanks to trade war tensions with the U.S.

Tariffs can determine where companies source products, Hilgert said.

This post brought you by FLOSSY ...the KING of unimportant OFF TOPIC Posts.
To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.
Berliner Heckflosse is offline  
Sponsored Links
Closed Thread

  Lower Navigation
Go Back   Mercedes Benz SLK Forum > General Discussion about Mercedes Benz SLKs > Off Topic


Quick Reply
Upload your files to MEGAUPLOAD
Upload your images to ImageShack

Register Now

In order to be able to post messages on the Mercedes Benz SLK Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
User Tag List

Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page

Similar Threads
Thread Thread Starter Forum Replies Last Post
jordan griska's 'wreck' is a luxury mercedes benz S550 made from thousands of mirrors Berliner Heckflosse Off Topic 0 07-03-2017 11:08 PM
OK, Google, tell Mercedes Me to start my car' M-B offers help from digital assistants in '16, '17 models Berliner Heckflosse Off Topic 0 05-07-2017 04:47 PM
Mercedes expands its Indian dealerships to drive growth Berliner Heckflosse Off Topic 0 12-16-2015 11:56 AM
Mercedes H7 Hi Power Lamp Set Caboz General Modifications R171 13 03-07-2011 09:45 PM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome

Clubs, Garage Plus vBulletin Plugins by Drive Thru Online, Inc.