Saturday, October 23, 2010

Mercedes Investing in China

Like many other automakers, Daimler AG; the parent company of Mercedes Benz, announced Friday that 2014-2016 will be Benz's biggest years in China.  Officials announced that they hope to sell around 300,000 vehicles during that time, 70% of which will be produced in China to keep up with the growing demand for automobiles.  However major-capacity could be an issue during those times, but officials believe that as long as China's economy continues to move in an increasing direction.  In a side report that I read prior to starting this blog assignment, the Mercedes S-400 BlueHYBRID sedan was the most popular car for young business men in China, and it came at a substantial price, too.  Therefore, with new fuel technologies which will help the Chinese environment, especially in big cities like Beijing, China's support of the German automaker will most likely be welcomed with open arms.

Many other automotive companies have found success in China.  Buick, a company that was in fear of going under years ago, turned itself around because of China.  Many Chinese auto buyers liked the new styling age of some cars known in America as the LaCrosse, and Lucerne, which was then modified for an American market after the GM/ US Auto crisis a couple of years ago.  Will Mercedes have that kind of success, just like Buick.  There are a lot of differences in both brands, but it will be up to the chinese consumers to determine!

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