Benz spending up big in China
Compact SUV production expected to move to the PRC with A-Class to follow?Mercedes-Benz is likely to move production of the GLK soft-roader to China as part of a €3 billion push in the next three years to make the Asian powerhouse its biggest market in the world.
If that comes to pass, the GLK built in the People's Republic will be the next generation model -- which is understood to be currently under development with right-hand drive planned for markets like Australia.
The company will invest in dealerships, production plants and even electric-car and infrastructure technology in an effort to boost its Chinese sales beyond 350,000, Mercedes-Benz CEO, Dr Dieter Zetsche, said in China last week.
"The GLK most likely will be the next one to be built here and the A-Class variants could be next," he admitted.
"There will also be an engine plant and new models exclusive to here, plus company expansions and there are very special plans to top up the electric infrastructure."
While Benz has its own electric-car programs in Germany and has just signed a deal with Bosch to build electric drive systems, that technology will not be used by Daimler’s Chinese joint-venture electric car company, BYD.
"Bosche engines will not be used in the BYD program," Dr Zetsche insisted. "We are not allowed to import electric drive into China.
"It will be a long transition from combustion engines to electric but we think its smart to be pro-active here with a young market in China to make it a more EV market right from the start," he explained.
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