Mercedes-Benz South Africa’s (MBSA) East London plant will again produce for the US market after its parent company relaxed production conditions for its four C-Class plants around the world.
The Daily Dispatch reported a year ago that MBSA would lose the lucrative order to export to the US, with the phasing out of the previous C-Class model code-named W204.
MBSA confirmed the cancellation of the US order at the time.
But in a surprise move, MBSA’s parent company, Daimler AG, opened the way for MBSA to supply the US export market again.
MBSA spokeswoman Lynette Skriker said: “ a vastly increased flexibility which includes a common planning process across the four plants in the network.
“This provides the option of exporting to various destinations, with one option being the US.
“The new generation C-Class is produced in the international Daimler AG production network across four continents.”
MBSA came under pressure last year when rolling strike action hit the South African car producing industry and its component manufacturers for a total of six weeks.
South Africa’s increasingly unstable labour market again became a matter of concern for investors when a strike by 220000 workers in engineering sector around the country saw MBSA producing at below capacity and halted production at two South African car plants owing to component shortages.
Daimler AG’s “common planning process”, which the Daily Dispatch understands is likely to serve as a back-up should there be hiccups at any plant, could solve some of these problems.
Border-Kei Chamber of Business executive director Les Holbrook welcomed the move as a boost for the East London economy.
“That would mean bigger volumes and a good injection into the East London economy which is currently suffering the long-term effects of low growth. It’s good there is light at the end of the tunnel,” Holbrook said.
National Union of Metalworkers of SA could not be reached for comment yesterday.
MBSA did not disclose whether there was an imminent or long-term order to fill for the US market or when it would resume production for the US.
The “common planning process” comes just months after Daimler AG launched a C-Class production line at its plant in Tuscaloosa, Alabama.
At this year’s annual results presentation, MBSA announced that it would supply its next generation C-Class launched in May to 80 right-hand-drive and some left-hand drive markets after losing the US contract.
The company said this would boost its annual production volumes by 50%. — siyam@dispatch.co.za
MBSA to export cars to US again
The Daily Dispatch reported a year ago that MBSA would lose the lucrative order to export to the US, with the phasing out of the previous C-Class model code-named W204.
MBSA confirmed the cancellation of the US order at the time.
But in a surprise move, MBSA’s parent company, Daimler AG, opened the way for MBSA to supply the US export market again.
MBSA spokeswoman Lynette Skriker said: “ a vastly increased flexibility which includes a common planning process across the four plants in the network.
“This provides the option of exporting to various destinations, with one option being the US.
“The new generation C-Class is produced in the international Daimler AG production network across four continents.”
MBSA came under pressure last year when rolling strike action hit the South African car producing industry and its component manufacturers for a total of six weeks.
South Africa’s increasingly unstable labour market again became a matter of concern for investors when a strike by 220000 workers in engineering sector around the country saw MBSA producing at below capacity and halted production at two South African car plants owing to component shortages.
Daimler AG’s “common planning process”, which the Daily Dispatch understands is likely to serve as a back-up should there be hiccups at any plant, could solve some of these problems.
Border-Kei Chamber of Business executive director Les Holbrook welcomed the move as a boost for the East London economy.
“That would mean bigger volumes and a good injection into the East London economy which is currently suffering the long-term effects of low growth. It’s good there is light at the end of the tunnel,” Holbrook said.
National Union of Metalworkers of SA could not be reached for comment yesterday.
MBSA did not disclose whether there was an imminent or long-term order to fill for the US market or when it would resume production for the US.
The “common planning process” comes just months after Daimler AG launched a C-Class production line at its plant in Tuscaloosa, Alabama.
At this year’s annual results presentation, MBSA announced that it would supply its next generation C-Class launched in May to 80 right-hand-drive and some left-hand drive markets after losing the US contract.
The company said this would boost its annual production volumes by 50%. — siyam@dispatch.co.za
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