Manufacturing News

Mercedes to launch China produced new E class mid 2010

Mercedes Benz will start producing the new E class in China in 2010.

E 300, Mercedes Benz

The new E class has been launched as an imported model with local production to begin by mid 2010, says Klaus Maier, president and CEO of Mercedes Benz (China). "We are launching it here as fast as possible," says Maier.

Sales of the new imported E 300 started last week in China. The all-new ninth generation of the E class features a 3.0L V6 engine and a 2 mode 7G Tronic automatic transmission.

The new E class has already amassed over 6000 pre-orders in China since it was displayed at the Shanghai auto show in April, says Maier.

"Production tests will begin in October," says Guenter Butschek, president and CEO of Beijing Benz Daimler Chrysler. "All equipment for local production has been ordered and testing will begin in the next couple of months."

Butschek says all contracts for locally sourced parts have been awarded. "For the new E class more than 500 parts have been locally sourced with local content significantly more than 40 percent," he adds.

Once parts reach Daimler Benz requirements, they are also then ready for global sourcing, he says. Parts from China are currently exported to the United States and Europe.

Despite the global downturn, Mercedes sales in China have increased. In the first half of this year, Mercedes-Benz sold 27,000 units in China, up 50 percent year-on-year, says the company in a release. 

Auto financing has played a significant role in increasing sales for Mercedes brand cars in China this year. In China auto financing schemes usually penetrate close to 5 percent of car buyers. 

"Auto financing has increased penetration rate to over 10 percent this year," says Walker.

Mercedes Benz executives declined to give exact forecasts for sales of the new E class in China. But they expect sales to increase significantly. "I am very optimistic for the second half of this year," says Walker. 

In China, Mercedes-Benz produces the E class and C class. In the first half of this year, sales of the C class sedan surged 105 percent from a year earlier to 6,917 units. By contrast, sales of the eighth generation E class dropped 48 percent to 4,363 units, according to Automotive Resources Asia, a J.D. Power unit.

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