Bmw and Mercedes-Benz sign deal to cooperate on U.S. vehicle preparation

Article by Christian A., on August 26, 2010

Under a five-year deal signed recently, Mercedes-Benz USA will be preparing the vehicles of BMW and Mini that come in for delivery through the port of Baltimore. The Mercedes-Benz vehicle preparation center will begin to inspect, process and repair all pre-delivered vehicles of these two brands on March 1.

The reason for this of course is to save time and money. BMW and Mini say that the deal makes economic sense.

In an interview with Automotive News, Jim O'Donnell, president of BMW of North America said that he estimates that 50,000 cars that are intended for the central region, including Chicago, will be prepared by Mercedes-Benz. However, details about the agreement remain under wraps.

Presently, BMW vehicles come in through Charleston and are shipped to BMW's factory in South Carolina for pre-delivery work.

O'Donnell said that due to the expansion of BMW's factory in Spartanburg, S.C., "the plant is no longer appropriate once the new X3 (crossover) starts to be built" next year. Since the shipping distance is shorter from Baltimore, O'Donnell says that this will save "reasonable amount of money."

While searching for an outside contractor, BMW's purchasing department proposed the deal. If this set-up works, he said that it's possible the two brands would have a similar arrangement at other vehicle processing centers. In an interview last week, Ernst Lieb, CEO of Mercedes-Benz USA, called the deal "a win-win-situation."

Lieb cited Mercedes-Benz's manpower and space to service these vehicles and said further that "there are other opportunities" for cooperation between the two German competitors. For now, Lieb said that BMW and Mini are assessing whether to use a joint shipping company to handle their brands once the cars are processed in Baltimore.

If you liked the article, share on:

Comments

Recommended

J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries