Mecedes to launch C-Class in China, despite management problems

Shanghai. September 3 (Gasgoo.com) - DaimlerChrysler (China) announces its plan to produce Benz C-class locally in China last weak. The announcement contradicts earlier media reports that the plan would be delayed or given up.

The company has officially announced that the Benz C-class sedans will initially be locally assembled with the semi-knockdown kits (SKD), and the introduced models will be revamped, however the company did not lay out a timetable for this plan.

During the first half of this year, Mercedes-Benz's China sales top 13,500 units, up 28% from the previous year. Out of the 13,500 unit car sales, more than 5000 units are imported S-Class, an increase of 50% from a year earlier. Figures also show that imported Benz cars are roughly 2.5 times the number of the locally-made ones in the half-year sales.

Beijing Benz, a joint venture between Mercedes-Benz and Beijing Automobile Works Co, now is capable of producing Benz E200k, E280, E350 and Benz E230. These models, though not popular as the imports, still enable Mercedes-Benz to save cost and time. However the company is still hindered by inefficient managing and marketing.

Key posts of Mercedes-Benz (China) Ltd. are occupied by German or Singaporeans executives, while Chinese employees could hardly have access to decision-making process. On another hand, the low-key management of this company does not have the same caliber to promote corporate image and handle government relations as aggressively as their counterparts from Audi and BMW

By contrast, Audi has named several Chinese vice presidents to head its Chinese business. In addition, the newly founded FAW-VW Audi Sales Division has successfully integrated the sales network of all imported and locally-made Audi cars. Audi has also invested heavily to improve government relation and promote corporate image.
 
Since 2005, DaimlerChrysler has invested 1.2 billion euros in China for its ongoing and future business, yet its management and marketing leaves much to be improved.

Local media reported today that Ulrich Walker, Chairman and CEO of DaimlerChrysler Northeast Asia and Xu Heyi, Chairman of Beijing Automobile had held talks for issues concerning the C-Class. And Xu will soon fly to Germany to meet Dieter Zetsche, the chief executive of DaimlerChrysler.