The Mercedes-Benz plant in Tuscaloosa, Alabama is to expand its supply of semi-knocked down (SKD) kits to Thailand and Indonesia.

SKD assembly of the Mercedes-Benz M-Class SUV recently got underway at a plant in Chakan in the Indian state of Maharashtra. This was the first time that Tuscaloosa had supplied kits for export. The GL-Class will also be assembled at Chakan, with both models also to be made at facilities in Thailand and Indonesia.

Daimler’s definition of SKD kits in the case of its two SUVs is ‘complete bodywork and further vehicle components’.

“Our new SUVs are very popular with our customers. We expect high growth rates also in the emerging markets and therefore extend our local production. Thus, we open up new potential as part of our growth strategy,” said Wolfgang Bernhard, Member of the Board of Management of Daimler AG responsible for Manufacturing and Procurement Mercedes-Benz Cars & Mercedes-Benz Vans.

Following the start of production of the M-Class in India, Thailand and Indonesia this year, the first units of the new GL-Class made from SKD kits will roll off the assembly line in India and Indonesia in the course of 2013.

A new SKD logistics centre was recently opened. It is operated by the logistics service provider BLG and works closely with the Tuscaloosa plant as well as with Daimler’s central international manufacturing control in Sindelfingen (Germany). Further vehicle parts such as engines and transmissions are delivered directly to the relevant destination via the Powertrain plant’s logistics centre in Stuttgart-Untertürkheim.

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Mercedes-Benz notes that its current global assembly locations are as follows: Egypt (C-, E-, S-, GLK-Class), India (C-, E-, S-Class; M- and GL-Class to be added in the future), Indonesia (C-, E-, S-Class; M- and GL-Class to be added in the future), Malaysia (C-, E-, S-Class), Thailand (C-, E-, S-Class; M-Class to be added in the future) and Vietnam (C-, E-, GLK-Class).

Author: Glenn Brooks

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