• Sign in to follow this  
    Followers 0

    Mercedes-Benz's Absurd Way Of Avoiding the Chicken Tax


    • Rube Goldberg would be proud

    Automakers go to great lengths to avoid being hit with the 25 percent chicken tax when they import trucks or vans into the U.S. Mercedes-Benz takes the cake for the most absurd method.

    For the past decade, Mercedes-Benz would build Sprinter vans fully in Germany before disassembling them and shipping the pieces to South Carolina. Workers in a small assembly building would put the vans back together. This method allowed Mercedes-Benz to claim the vans as "locally made".

    "I really couldn't believe it. To build up and tear down, that's really something that hurts me, personally. And the costs!" said Volker Mornhinweg, worldwide head of Mercedes-Benz Vans.

    Mornhinweg first learned about this back in 2010 and like us, found himself wondering 'WHY?!' Thankfully, Mornhinweg began working on making this process not seem like Rube Goldberg machine which will fully culminate with a new assembly plant in South Carolina that will be tasked with building the next-generation Sprinter, most likely in 2018.

    Source: Automotive News (Subscription Required) 

    0


    Sign in to follow this  
    Followers 0


    User Feedback


    Very cool, I agree that it is crazy to make a product, break it into pieces and ship it over for reassembly and then say it is local. Glad to read MB is doing the right thing in building them truly locally for the NA market.

    My gut tells me that more and more companies are gonna want to have core models built locally or face the wrath of the local country tax man.

    0

    Share this comment


    Link to comment
    Share on other sites

    Or they could just bolt a second row seat in, then remove it at port and recycle it like Ford does with the Transit Connect...

    1

    Share this comment


    Link to comment
    Share on other sites
    10 hours ago, ocnblu said:

    Or they could just bolt a second row seat in, then remove it at port and recycle it like Ford does with the Transit Connect...

    I think Ford was moving some Transit production to North America...

    5 hours ago, daves87rs said:

    LOL @ the taking it apart to ship....

    The kid in me that built model cars just wants to get one, some assembly required...lol...

    :unsure::unsure::unsure::unsure::D:D:D

    1

    Share this comment


    Link to comment
    Share on other sites

    Most companies put seats in the back like oncblu stated.  Then they are passenger cars, once said n the USA they take the seats out, ship the seats back to Europe and repeat the process.

    this is one of the dumbest taxes ever too.  But kudos to Daimler for creating American jobs while Ford and Chrysler ship them to Mexico.

    0

    Share this comment


    Link to comment
    Share on other sites
    8 hours ago, Drew Dowdell said:

    So why not just build it here in the first place?

    That's what I thought as well.. Why spend the time assembling it just to immediately disassemble it?

    0

    Share this comment


    Link to comment
    Share on other sites


    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

      Only 75 emoticons maximum are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor




  • Popular Stories

  • Today's Birthdays

    1. Northstar
      Northstar
      (29 years old)
    2. redfox
      redfox
      (74 years old)
  • Similar Content

    • By William Maley
      For the past few years, luxury automakers have been trying to fill every single niche they could think of. It's why we have such models as the BMW 5-Series GT and Mercedes-Benz GLC-Coupe for example. But now, BMW and Mercedes-Benz admit they have too many models and are planning to cut some.
      “The checkerboard of body styles and segments is rather full, although there are still a few to be finished. We’ve got an X2 and an X7 coming, and there are a few others, but I also know—because we’ve taken decisions—that some body styles will be removed in the future,” said Ian Robertson, BMW’s head of sales and marketing, to Car and Driver.
      “There’s definitely more of a move toward four-door coupes. We’ve done the Gran Coupes; they’ve really worked. People like the lower seating position and the sporty dynamics but also the fact there’s a door in the back. It’s fair to say that when we look at the checkerboard, because of the new things we’re putting in, there are some things we can take out,” Robertson went on to say.
      Dieter Zetsche, head of Mercedes-Benz cars harbors the same thoughts.
      “The specialty cars, these coupes and convertibles, were always niche cars. The expansion into China and other emerging markets [has given] huge opportunities for sedans, but they did not take up these specialty cars. Which makes the business case for these vehicles less easy.”
      Yep, it seems coupes and convertibles are on the chopping block - not the SUV-coupe things you were likely hoping for. Now Zetsche did say that would still offer two-door models, but it would not be “in the variety we are having them right now.” Taking into consideration there are coupe and convertible versions of the C, E, and S-Class, along with the SLK and SL roadsters, and the AMG GT coupe and convertible, we wouldn't be shocked if a couple of those models disappear.
      Source: Car and Driver
    • By William Maley
      For the past few years, luxury automakers have been trying to fill every single niche they could think of. It's why we have such models as the BMW 5-Series GT and Mercedes-Benz GLC-Coupe for example. But now, BMW and Mercedes-Benz admit they have too many models and are planning to cut some.
      “The checkerboard of body styles and segments is rather full, although there are still a few to be finished. We’ve got an X2 and an X7 coming, and there are a few others, but I also know—because we’ve taken decisions—that some body styles will be removed in the future,” said Ian Robertson, BMW’s head of sales and marketing, to Car and Driver.
      “There’s definitely more of a move toward four-door coupes. We’ve done the Gran Coupes; they’ve really worked. People like the lower seating position and the sporty dynamics but also the fact there’s a door in the back. It’s fair to say that when we look at the checkerboard, because of the new things we’re putting in, there are some things we can take out,” Robertson went on to say.
      Dieter Zetsche, head of Mercedes-Benz cars harbors the same thoughts.
      “The specialty cars, these coupes and convertibles, were always niche cars. The expansion into China and other emerging markets [has given] huge opportunities for sedans, but they did not take up these specialty cars. Which makes the business case for these vehicles less easy.”
      Yep, it seems coupes and convertibles are on the chopping block - not the SUV-coupe things you were likely hoping for. Now Zetsche did say that would still offer two-door models, but it would not be “in the variety we are having them right now.” Taking into consideration there are coupe and convertible versions of the C, E, and S-Class, along with the SLK and SL roadsters, and the AMG GT coupe and convertible, we wouldn't be shocked if a couple of those models disappear.
      Source: Car and Driver

      View full article
    • By William Maley
      Mercedes-Benz Posts Best-Ever February Sales Volume With 24,522 Units
      ATLANTA, March 1, 2017 /PRNewswire/ -- Mercedes-Benz today reported the highest February sales in its history with 24,522 units up 6.9% from the 22,941 vehicles sold in February 2016. Adding 2,513 units for Vans and 348 units for smart, Mercedes-Benz USA (MBUSA) achieved its highest February to date with a grand total of 27,383 vehicles, up 6.8% from a year ago.
      "We're off to a solid start to the year, and expect steady growth as we approach the close of the first quarter," said Dietmar Exler, president and CEO of MBUSA. "Strong demand for our SUV lineup continues, and we look forward to the launch of more new models throughout the year."
      Mercedes-Benz volume leaders in January included the C-Class, GLE and E-Class (including the CLS) model lines. The C-Class took the lead at 6,145, followed by the GLE sales of 4,017. The E-Class rounded out the top three with 3,471 units sold.
      Mercedes-AMG high-performance models sold 2,548 units in February, with a total of 5,144 units sold year-to-date (up 31.6%).
      MERCEDES-BENZ USA 
      Sales -- February 2017
        Mercedes-Benz Passenger Vehicles
      Feb-17
      Feb-16
      Monthly %
      YTD 2017
      YTD 2016
      Yearly %
                    B-CLASS
      56
      37
      51.4%
      109
      95
      14.7%
                    CLA
      1,526
      1,474
      3.5%
      2,931
      4,642
      -36.9%
                    C-CLASS
      6,145
      6,102
      0.7%
      12,598
      11,181
      12.7%
                    E-CLASS/CLS
      3,471
      2,700
      28.6%
      7,626
      5,490
      38.9%
                    S-CLASS
      1,002
      1,558
      -35.7%
      2,214
      2,835
      -21.9%
                    SLC
      268
      270
      -0.7%
      504
      536
      -6.0%
                    SL
      230
      369
      -37.7%
      462
      583
      -20.8%
                    AMG GT
      93
      95
      -2.1%
      174
      220
      -20.9%
                    *SLS AMG
      -
      1
      -
      -
      1
      -
                    GLA
      2,194
      1,597
      37.4%
      4,201
      4,638
      -9.4%
                    GLC
      2,765
      3,278
      -15.6%
      5,830
      6,127
      -4.8%
                    GLE
      4,017
      3,948
      1.7%
      7,987
      7,611
      4.9%
                    GLS
      2,467
      1,226
      101.2%
      4,803
      3,022
      58.9%
                    G-CLASS 
      288
      286
      0.7%
      610
      624
      -2.2%
                    TOTAL
      24,522
      22,941
      6.9%
      50,049
      47,605
      5.1%
                    Vans1
      2,513
      2,269
      10.8%
      4,562
      4,168
      9.5%
                    smart
      348
      422
      -17.5%
      672
      821
      -18.1%
                    MBUSA
      Combined Total
      Feb-17
      Feb-16
      Monthly %
      YTD 2017
      YTD 2016
      Yearly %
                    GRAND TOTAL
      27,383
      25,632
      6.8%
      55,283
      52,594
      5.1%

      1Mercedes-Benz, Freightliner Sprinter and Metris Vans are sold and marketed in the U.S. by Mercedes-Benz USA and Daimler Vans USA, respectively.

      *out of production
    • By William Maley
      With the clock winding down on production of the Holden Commodore, Chevrolet dealers are snapping the remaining lot of SS models being exported to the U.S. Wheels has learned from Chevrolet that the extra 1,000 SS models Holden was planning to build for the U.S. market have been snapped up.
      “All US dealer orders are in for the allocated production of the 2017 Chevrolet SS. This includes any additional units that were confirmed for production last year,” said Chevrolet.
      Originally, Holden was planning on building 2,000 SS for the U.S. However, the large demand by dealers for the last SS models caused Holden to add an additional 1,000 models for export.
      Source: Wheels

      View full article
    • By William Maley
      With the clock winding down on production of the Holden Commodore, Chevrolet dealers are snapping the remaining lot of SS models being exported to the U.S. Wheels has learned from Chevrolet that the extra 1,000 SS models Holden was planning to build for the U.S. market have been snapped up.
      “All US dealer orders are in for the allocated production of the 2017 Chevrolet SS. This includes any additional units that were confirmed for production last year,” said Chevrolet.
      Originally, Holden was planning on building 2,000 SS for the U.S. However, the large demand by dealers for the last SS models caused Holden to add an additional 1,000 models for export.
      Source: Wheels
  • Recent Status Updates

  • Who's Online (See full list)