Mining industry interest in 6x6 G-Wagen

A sideline project for the Australian Army is branching out in other directions for Mercedes-Benz. When the army asked the German manufacturer to tender for the supply of a 6x6 commercial vehicle to replace the aging 'Perentie' Land Rovers, Benz approached the issue with caution.

The Army was requesting a vehicle that didn't exist anywhere in the world and the G-Wagen that would be the basis for 'Project Overlander' was bound to require considerable engineering work to meet the standard. Eventually however, Benz came up with a vehicle that won the tender, largely by virtue of its ability to protect occupants from under-road IEDs (improvised explosive devices) -- something the Land Rover couldn't provide.

With the Army covering most of the costs associated with the G-Wagen's compliance with ADRs, Benz is now in a position to offer the vehicle to private buyers. No secret in that; we reported as much a year and a half ago (more here).

But we've now learned from MB that even the exclusively Army 6x6 model may sell to a wider market -- specifically the mining industry.

"Basically, we're actually investigating it now," says David McCarthy, Senior Manager Corporate Communications for Mercedes-Benz in Australia.

"We're following up with those people what their requirements are. When we've got a better handle on that, then we'll be speaking to the factory, [asking] 'is this feasible?' and 'what sort of price are we looking at?' So it's very early days...

"I think it could be quite a few hundred a year," says McCarthy, when asked what this would mean in sales terms. "That's obviously what's piqued our interest... But they approached us, after they saw the Overlander vehicle at the Land Defence Exhibition.

"They expressed that they weren't happy with the durability and safety of a lot of the vehicles that they're using currently, which obviously are modified vehicles -- and they want something that's durable.

"It's sort of something that came out of left field for us, it wasn't something we were expecting."

It's nice to have customers beating a path to the door, rather than chasing them, but as McCarthy tells it, there are other considerations before a private sector 6x6 G-Wagen can go ahead.

"At the end of the day, price is going to be important, but volume impacts on that as well," he says.

It's ultimately icing on the cake for the viability of local G-Wagen sales if the 6x6 is imported for the mining industry. At the other end of the scale, Mercedes-Benz is now contemplating a G-Wagen to sell into the market on the low side of $100,000. Such a vehicle could account for as much as 50 per cent of all G-Wagen sales.

"We're investigating that as well," says McCarthy of the G-Wagen 'Pur' -- a bare-bones model that was built to commemorate the G-Wagen's 30th anniversary and has received a warm response from the market.

"That needs to be confirmed by the factory that that's do-able. We think there's a market of 200 to 300 of the 350, the 500 and the G55 -- and that's obviously pretty high luxury spec. We think a less luxurious spec, the 'Pure', that opens up a whole new market -- not just because of what people want to use it for, but because of the price entry point."

On that point, the G-Wagen Pur (pictured), if it arrives with the rest of the range, in the second half of next year, will face tough competition from Toyota's 76 Series LandCruiser, not least of all for the Toyota's lower price.

"Certainly, in terms of its offroad capabilities, I don't think it has any [competitors]," says McCarthy. "[Toyota] might think [the 76 Series LandCruiser] is a competitor, but in terms of what our vehicle does... No, I don't see that it has a competitor."

McCarthy feels that the LandCruiser's pricing will be eroded by the G -Wagen's safety.

"Of course the safety credentials of ours are very, very high."

And once you're paying above the Luxury Car Tax for an offroader, pricing is a lesser consideration.

Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at www.carsales.mobi