CASL55

I just got around to reading the 500 issue of Fortune (cover date 4/18). In there is an article on automotive manufacturing outsourcing. One of the interesting pieces of information in the article is that Magna Steyr makes the current MB E-Class 4MATIC vehicles, in Graz. So our fine German machines are fine Austrian machines.

I wonder it there's any quality difference between the Manga Steyr manufactured cars and the in-house ones. The only manufacutring defect I found in my 11/04 build E500 wagon was that the microphone for the cell phone and the voice command wasn't connected. I'm not even sure that's installed at the manufacturing facility, could be at the port of entry.

Jim

DWP

It's come up from time to time, for instance:

https://mbworld.org/forums/e-class-w211/91409-where-e-class-made.html

A car's place of final assembly seems to be less and less important, given that cars are assembled with parts from all over the world. Two current models that are often promoted as the rebirth of the American muscle car, the Chrysler 300C and Pontiac GTO, are assembled in Canada and Australia respectively. There may be limits on globalism in car manufacturing beyond which a maker goes at its own peril, though, and the ML's manufacture in Alabama comes to mind in that respect.

CASL55

Thanks for the pointer. What surprised me was not that the vehicles are being built outside of Germany, but that they are being built by another company than MB. Magna Steyr is the largest subcontract manufacturer in the car business, making the BMW X3, the Euro version of the Chrysler Voyager and the Jeep Grand Cherokee, the E-class 4MATIC, the G-class, and the Saab 9-3 convertible. I had not heard of them, although I was aware of Bertone, Karmann, Pininfarina, and Valmet, who build some of the Boxsters.

Jim

DWP

I didn't pick up your point about having a Mercedes built by a contractor instead of in a Mercedes-owned factory. It's a good point because it raises the question of what brand identity really means. If a Mercedes is built by a contractor outside Germany, using content from a dozens or hundreds of other contractors, is it just the fact of design and (one hopes) supervision and QC by Mercedes that makes it a Benz? Apparently so.

Incidentally, 30+ years ago, when I was in school, I needed a cheap bicycle and I bought a Steyr bike, made in Austria. Seems that the Steyr folks have branched out since then.

steph280

There was a news release yesterday that C and E class for local market in China will be built in Shanghai!

As if Mercedes doesn't have enough quality issues with cars built inhouse, now they're trusting the Chinese to build them?

I hope they apply enough superglue to keep the wheels on...

CASL55

According to Fortune, here's the way the relationship usually works. The branding automaker designs some or all of the car, the contract manufacturer the rest (Magna Steyr employs 2,000 design engineers). The contractors buy everything from approved sources, including parts and engines supplied by the automaker farming the work out. The branding automaker negotiates price on many of the parts with the suppliers to take advantage of their presumably higher volume (and, as a side effect, making it harder for the contractor to enter the replacment part business). The contractor then sells the car ready to ship to the dealer for a fixed price (the BMW X3 sells to BMW for about half of dealer invoice) to the automaker with the dealer network.

I don't know what, if any, part of the E-class 4MATIC was designed by Magna Steyr. Possible none. Contractors that build low-volume convertibles typically design that part of the car, as well as reinforcement structures. Karmann famously designed the whole body and interior of the Karmann-Ghia.

My first semi-serious bike was a Peugeot.

Jim

ATS

I was under the impression that the E Class 4 MATIC is built in Austria and the regular cars are built in Germany. This is why the 4MATIC's do not have a C in their paint code and the German ones do which designates ClearCoat.

Also, the ones that will be built in Asia are for the Asian market, from what I have read.

mbbodytech

All Mercedes-Benz vehicles have a clear coat. The "C" you are referring to is used to designate a mid-production introduction of ceramic based clear coat. Even at that there are several vehicles that do have the ceramic clear, but no C in the paint code. (for example the 164, since it will have had it from introduction) The vehicles built in Graz do not have the ceramic clear, thus no C.

The reason the 4matics are built in Graz is that Magna Steyr did the development of the 4matic system. They have a huge wealth of knowledge when it comes to four wheel drive, and it was a wise decision for MB to hire them for this work. The body shells are made by MB, sent unpainted to Graz, where they are modified, painted and then assembled. A way that you could tell for sure if your vehicle was built in Graz would be to look at the VIN number. The seventh character from the end is always a letter, and it designates the plant where the vehicle was built. X is for vehicles built in Graz.

I have been to the factory in Graz, and was highly impressed. The reason for my visit was regarding the G class, but let me tell you that the people that work there are not your typical factory worker. Most of them go to school at night, and they all know that since the contract to build the vehicles is set for a period of time, the only way they can get a raise is to find improvements to the production process on thier own, thereby increasing productivity.

I have reservations about anything built in China, but never about anything built in Austria.

ATS

Yes, they call it Nano Coat. http://www.mercedes-benz.ca/index.cf...ID=141&id=3246

So, then, are only the 4MATICS built in Austria? Particually the E Class?

mbbodytech

Yes, only the 4matics. Steyr did the development of the S class 4matic system, but I'm not sure if they build it too or not. Going back to the plant code in the vin, the S class I have seen with 4matic have an A, which indicates Sindelfingen. I'll have to dig some more.

I'll check Monday, and let you know.

CASL55

According to the Fortune article, the only MB-branded cars built by Steyr are the E-Class 4Matic and the G-Class. However, they might build the 4Matic components for the S-CLass, and ship them to Sindelfingen for final assembly.

Jim

ruykava

incidentally, most mercedes here in sunny malaysia are assembled right here, in malaysia. i haven't heard of anyone really having any trouble with them (at least, nothing crazy like some of the quality problems we've been hearing in these forums) and my own all seem fine. even the plastics for the interior are made in malaysia, and so are components like the windscreen. the difference in price is enormous, up to about US$50k, thanks to the crazy taxes.

so i won't be too worried about the chinese-built mercs at all -- although i guess it does detract from the appeal slightly to know your car came from shanghai -- then again, that may change in 20 years time, who knows how the world's economy is going?