Mercedes-Benz Malaysia (MBM) has hinted that its new Mercedes-Benz GLC may soon be locally assembled. The GLC 250 4Matic was launched only recently at RM328,888, alongside the GLE and GLE Coupe, forming MBM’s new range of SUVs in the country.
At the event, we quizzed MBM’s vice president of marketing, Mark Raine, about on the possibility of its SUVs being assembled locally in Malaysia. “Yes, it is definitely a possibility. Especially the GLC,” he answered.
“We are seriously looking into that. Everyone knows that our success in 2015 has come from our local production and local product portfolio which includes the C-, E- and S-Class. We’ve invested a lot and we strive to invest further, and obviously, as we expect the sales volume for these models to be quite considerable, we’re seriously looking into making them local as well,” Raine added.
Clearly, the GLC is the first model on the VP’s mind. Reasonably, the larger SUVs, the GLE and GLE Coupe, may not be as heavy volume sellers just yet, giving reason to the company to test the waters with its most affordable SUV first.
However, Raine explained that adding the GLC’s assembly to its current production plant is significantly easier said than done. Rather than just have to retool a production line at its facility in Pekan, Pahang, the company would have to make room for a whole new line alongside what’s already there.
Unfazed by the idea, Raine remains optimistic about it instead, reflecting on a successful 2015 which he credits its assembly facility for. “We’re also looking at how we could expand our production plant even further because that allowed us to sell as many cars as we did in 2015. We increased our volume by 120% that year,” he concluded.
No timeline was revealed by the MBM VP, but it almost looks certain at this point that the company would, at the very least, be locally-assembling its GLC SUV. As to which variants may make the cut, well, that’s anyone’s guess for now, too.
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No surprise. This is how MB keep up with the competition… by cheaper price tag.
MB is using Chinese goods selling strategy….cheap…cheaper…cheapo….
Another way of seeing it; Mercedes-Benz is the no.1 luxury brand is Malaysia because they are our no.1 investor in the luxury segment. This is nothing new, Mercedes-Benz has invested in our auto industry as early as the 1970s, if I’m not mistaken. The early CKD Benzes were built at the Capital Motor Assembly/ Oriental Assemblers plant in Johor Bahru. And later in 2005, production shifted to the the HAMM Pekan plant. At one point in the 90s, Tan Chong Motor Assemblies also provided painting and welding services for CKD Mercs.
Mercedes-Benz has provided thousands of jobs (both direct and auxiliary) for Malaysians and Malaysia-based companies. They’ve also established a strong value chain here over the past few decades. No other luxury carmaker has supported our industry as much as Mercedes-Benz. Of course, BMW also had local production lines here for many decades, initially in Kuching and presently at Inokom’s Kulim plant, but I believe their scale of operations here has always been shadowed by Mercedes’.
Anyway, I hope MBM will bring in more CKD models in the near future. The more CKD models they sell, the better their sales will be. In the near future, when our market is gradually liberated, I personally hope that MBM would preserve their local operations and make Malaysia their ASEAN production and export hub, as opposed to Thailand or Indonesia.
If our government and MITI are smart enough to convince Mercedes-Benz, we would at least have the support of an influential player in the luxury segment. We have already lost the economy segment to Thailand and Indonesia, but the luxury segment is still anyone’s game. Unlike economy cars, luxury cars do not hinge on high volume production with economies of scale and low labour costs, as profit margins are generally much higher in the luxury segment. If we can convince Mercedes-Benz to choose our auto industry, it would be easier to convince others too (BMW, Audi, Lexus etc.).
the interior of merc is so beautiful. maybe that what seal the deal when choosing between merce and BMW. proton should learn something here, make proton interior eazy to look and ergonomic
Very UGLY car. Nuff said.
so is your….
keep everything the same as the cbu glc, but add in a bigger screen and full command system
Is this confirmed?! :D That would be GREATT
Bring in CKD GLC200 pliz!!
Cut the price by 20-30k and viola, best selling premium SUV crown will belong to MBM
MADE IN PEKAN, I dont trust it. I may get cheated because someone in Pekan already cheat whole nation. Just my 2cents