DaimlerChrysler Malaysia Sdn Bhd (DCM) will start selling CKD versions of the Mercedes Benz S-class luxury sedan beginning February 2007. So far it’s assembly plant in Pekan, Pahang has already produced 25 units of the CKD Mercedes Benz S-class, and once 100 units are ready, sales will begin. At a rate of 25 units a month, the 100 units will be ready in time for the proposed February 2007 launch and sales.

DCM’s Pekan plant is a joint venture with local conglomerate DRB-HICOM and currently assembles CKD packs of the Mercedes Benz E-class as well as the Mercedes Benz C-class. The plant also assembles Mercedes and Mitsubishi Fuso commercial vehicles. It’s total production capacity is 5,000 units annually, and production is currently at the 3,000 unit level. DCM plans to assemble 300-500 Mercedes Benz S-class CKD packs annually, and will be the only plant in Asia to assemble the S-class.

The baseline Mercedes Benz S350L S currently costs RM939,888 in CBU form. Two other models, the CBU S350 SE and the CBU S350SEL cost RM978,888 and RM1,048,888 respectively. CKD assembly should allow the car to be priced cheaper in Malaysia, though it remains unknown at this time if much of the savings will be passed on to the customer.