Daimler’s China business is getting increasingly important. Two series, the C-Klasse and the E-Klasse, are already being built in China at their joint venture with Beijing’s BAIC. Soon, there will be a third line, says Automobilwoche [sub]. Today, Daimler’s CFO Bodo Uebber did not want to deny that it will be the GLK compact SUV. Wait, there is more …
By 2015, Daimler, called “Benz” in China, wants to double their annual sales in the Middle Kingdom to 300,000 units, half of them produced in China. The joint venture plant in Beijing needs to double its capacity.
And here comes a shocker for Daimler fundamentalists: Daimler might be building engines in China. For the first time in Daimler’s history, engines will be built outside of Deutschland, says Automobilwoche. Oh Lord, your next Mercedes Benz might have a Chinese engine.
I’ve been thinking off and on that the new C-class would be kind of nice to own, but have always been leary of them. Once these engines go into them I’m pretty sure I won’t go near one…
I’ve really liked the latest C class as well, but other than the price and attitude of dealers (particularly if you ask about a manual transmission) the current motor seems a bit antiquated for a luxury brand. I wonder if that makes it any more reliable?
That said there’s nothing inherently wrong with making a motor in China; like anything made anywhere you just have to make sure it’s made *well*. Maybe that’s a little harder to do or easier to ignore when you’re shooting for the lowest cost, but it can be done. Look at the mechanisms and moldings of model trains for the last 15 years; China does make some good stuff.
The Mercedes cache might not survive manufacture of key components in China. It suffered a great enough blow from their combination with Chrysler and concurrent (or consequent?) quality problems.
If there are ANY problems with Chinese engines, the net will let the world know.
There’s nothing better at killing repeat sales that having your golf partners ask if your Mercedes ‘has one of these Chinese engines with all the problems”.
You get tired of assuring them that yours is still one of the “real” Mercedes. So when the lease is up, you go and buy a Lexus.
More proof that golfers are wankers?
In all likelihood, for the same amount of money, the Chinese can (and will) build a better engine than the Germans.
Well, this would have made a good installment for a “Daimler Deathwatch” series. Another opportunity lost.
The poster who mentioned being asked by golfing buddies if that new Benz has ‘one of those Chinese engines’ is absolutely right on, at least in the States, where one-upmanship is an art form. Daimler already tarnished the brand with the Chrysler alliance, and according to my mechanic, ‘they don’t make them like they used to.’ Daimler wants to endear itself to the exploding market in China for luxury cars, so maybe more Chinese content is important in that market. Daimler is just practicing labor arbitrage like all global companies are, to dramatically increase margins. I doubt that a $50,000 Benz made in China will have the same perceived value in the West. China could make knock-off Benz copies for $10,000 I bet.
Make sure your Mercedes is a real Mercedes. Buy a Lexus or a Hyundai Genesis.
I don’t play golf so I don’t know how golfists usually speak with each other but I think I’d start looking for a new hobby if someone regularly asked me such a rude and prejudiced question.
For the record, my car’s engine was made in Poland and it works just fine.
I know. From his comment, it would appear that golfers are a bunch of elitist a-holes with more money than brains. I think people can safely ignore any such condemnation.
Do Audi owners care that their engines are made in the Czech republic or do BMW drivers care that the X5 is built in the US? Not really – as long as MB can deliver the quality this seems like a good move to control their costs.
+1 carguy
I personally wouldn’t buy a German car with a major component made in China unless the car had a reputation as being reliable and cost a lot less; at this point it takes years to establish. With potential clients like me they may well go bankrupt by then.
“SVX pearlie
June 24th, 2010 at 2:00 pm
I know. From his comment, it would appear that golfers are a bunch of elitist a-holes with more money than brains.”
And your point? :)
Now now. Country club members are few and far between. The vast majority of golfers are working/middle class, and if they’re members of a club, it’s a public or municipal course. At my muni club, the directory has ads from roofers, carpenters, tile setters, plumbers, a DUI attorney and a bail bondsman – all members. We tend to have the same opinion of the country club set as stated above, and we know we outnumber them 20-1. FYI, the most common car question at my muni course is “How many more miles you think you can get out of that heap?”
I have to say that the richest people I know (materially as opposed to spiritually) seem to drive fairly shabby cars.
Snobbery is a very subtle and nuanced game to play, if you go around shouting about how rich you are, people higher up the social ladder than you will look down on you even if they are poorer; we’ve all seen Caddyshack. Going for the “badge delete” option on your leased cooking Merc is a sure sign that you don’t have much money, deleting the badge on a V12 S-Class that you paid for with cash shows that you do. However, the owner of my company, a millionaire many times over, drives a slightly dented 10 year old E-Class; he doesn’t (em)need(/em) to impress anyone.
I find it amusing that so many would still be reluctant to buy, simply because of the product’s country of manufacture. Would these same ppl have issues with their Ipods, Macbooks, Thinkpads, LG screens, all of which are manufactured in China? I hope they also know that the V6 in the Trailblazer, and the block of the engine in teh Honda Fit, are also made in China…
Many people don’t care where their “throw-away” products are made, but would care where the engine in their $50k car was made. I don’t, but know many that do.
Daimler has been making diesel engines in Brazil for decades. Wasn’t the original BMW Mini engine made by Daimler in Brazil. Whats the difference?