This message was sent to all US dealers this morning:
Dear employees As you know, in the last few weeks we have scrutinized the possible production locations for the Mercedes-Benz C-Class successor generation from 2014 on. This is our top-selling model series abroad. That is why it is particularly important to produce it in close proximity to our sales markets. With the present decision we will bolster the market-based production of our passenger car models worldwide in due consideration of our responsibility for Germany as a business location. At the same time, we will be able to safeguard the jobs of the Sindelfingen employees in C-Class production. In this context, the Board of Management has decided the following: The C-Class production for the European market and the model variants will be combined at the Bremen plant beginning in 2014. Through this bundling, we are improving our efficiency, reducing costs and bolstering the strength of the Bremen plant as a center of competence for the C-Class. From that time on, for the first time, the C-Class will also be produced at the Tuscaloosa plant for the key NAFTA market. This will enable us to achieve close-to-market production of the new C-Class sedan independent of currency fluctuations. At the same time, we can also utilize the existing capacities at Mercedes-Benz U.S. International (MBUSI). Currently, the local scopes account for nearly twenty percent of the C-Class production worldwide. To enable covering the approx. 20% higher C-Class production volume in the Bremen plant, the assembly of the SL roadster will be moved from Bremen to the Sindelfingen plant in return. We will use the resources freed up in Sindelfingen through the discontinuation of C-Class production to strengthen S indelfingen as a central technology and research location and worldwide competence center for the production of premium and luxury class vehicles, increasingly also with alternative drives. For the Sindelfingen plant, we have developed a personnel concept for compensating a substantial portion of the employment effects arising from the reorganization of C-Class production from 2014 through the assembly of the SL. The remaining affected employees, which number about 1,800, will also be offered attractive employment opportunities in the future. This will enable maintaining the employment of the Sindelfingen employees engaged in C-Class production. In Bremen, employment will be safeguarded for the long term as a result of the extended C-Class production. Due to the high regional demand in China, the capacity for the C-Class assembly at the Beijing plant is to be expanded as planned. Along with the future Rastatt-Kecskemét coordinated production system for our compact vehicles, the C-Class production network will make a decisive contribution to the even more dedicated use of our resources, thus ensuring clear and stable future prospects. We currently produce a good 80% of our vehicles in Western Europe but sell less than 60% there. This gap will continue to widen over the next few years and our overseas markets will increasingly gain in importance. That is why we must move our production closer to the market in order to facilitate an even quicker and more flexible response to regional customer requirements, utilize customs and logistical advantages and at the same time eliminate our dependency on currency fluctuations. In addition, by honing the expertise of our locations, we are reducing the level of complexity in our production processes. This is indispensable, particularly in the price-sensitive and intensely competitive segment of the C-Class. In this process, Germany will remain the essential core of our production network. A look at the figures illustrates this. Although we generate “only” around 28% of our revenues in Germany, 89% of our division’s employees work here. In addition, we recently announced that we want to invest around €3 billion in the German passenger car locations in 2009 and 2010. That, too, is another signal for Germany as a business location. We will explain all other details to the Works Council and elaborate the effects on the employment situation. Of course, we will keep you informed on the results and next steps! Yours, Dieter Zetsche Wilfried Porth Rainer Schmückl _ ___________________________________________________________________________________ RLE _______________________________________ http://www.okiebenz.com For new and used parts go to www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
