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post #11 of 22 (permalink) Old 04-07-2010, 07:32 PM
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To my knowledge, Mercedes Banz does not exist as a registered Company anywhere in the world. I recommend that you sharpen your finger or gray cells. Mercedes Benz, if that is the question, is a registered trade mark of motor cars, trucks and other vehicles and products manufactured or marketed by Daimler AG, a German Corporation headquartered in the Stuttgart area.

Among the ventures sought by Daimler was the purchase of Chrysler. This was doomed to failure for maintaining the same management who was not apt to sell Mattel vehicles, less alone the more competitive cars and trucks of America's #3, due to poor design, bad quality standards and QC, and a chain of dealers who could not gain faithful customers with their shady ways without giving away the farm. Add to this the animosity of UAW to an European owner, and an owner who did not understand that making, marketing and selling American cars follow an entirely different set of parameters and public than MB and their customers. So after swallowing Chrysler, it had to be ejected like a hot potato.

Now with Renault-Nissan the playing field is more level, and who knows if the Alabama experiment will not get into this picture of cooperation.

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post #12 of 22 (permalink) Old 04-07-2010, 08:01 PM
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To my knowledge, Mercedes Banz does not exist as a registered Company anywhere in the world. I recommend that you sharpen your finger or gray cells. Mercedes Benz, if that is the question, is a registered trade mark of motor cars, trucks and other vehicles and products manufactured or marketed by Daimler AG, a German Corporation headquartered in the Stuttgart area.

Among the ventures sought by Daimler was the purchase of Chrysler. This was doomed to failure for maintaining the same management who was not apt to sell Mattel vehicles, less alone the more competitive cars and trucks of America's #3, due to poor design, bad quality standards and QC, and a chain of dealers who could not gain faithful customers with their shady ways without giving away the farm. Add to this the animosity of UAW to an European owner, and an owner who did not understand that making, marketing and selling American cars follow an entirely different set of parameters and public than MB and their customers. So after swallowing Chrysler, it had to be ejected like a hot potato.

Now with Renault-Nissan the playing field is more level, and who knows if the Alabama experiment will not get into this picture of cooperation.
Is there an echo in here?

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post #13 of 22 (permalink) Old 04-07-2010, 09:19 PM
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...Now with Renault-Nissan the playing field is more level, and who knows if the Alabama experiment will not get into this picture of cooperation.
What do you mean by the Alabama experiment? I know they assemble the ML-Class there but I don't know what else. Like Toyota and some of the other foreign automobile companies, they run non-union shops here.

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post #14 of 22 (permalink) Old 04-08-2010, 09:55 AM
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The Alabama plant builds ML, GL, and R-class and in the future the C-class. Unlike the first three, the C-class operation there won't be the only one in the world.

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post #15 of 22 (permalink) Old 04-08-2010, 12:40 PM Thread Starter
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WOW.. So I assume that profits from the sale of Mercedes in the U.S go to Germany?

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post #16 of 22 (permalink) Old 04-08-2010, 01:03 PM
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WOW.. So I assume that profits from the sale of Mercedes in the U.S go to Germany?
Surprise, surprise, surprise... The mother company always invest for profits, that is the very root of every corporation, American or otherwise. With our laws, it is perfectly OK to take the after taxes profits to the owners, wherever they might be.

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post #17 of 22 (permalink) Old 04-08-2010, 01:11 PM
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Is there an echo in here?
I don't think you picked on Mercedes Banz. Also, painting the picture in more detail and at a more elementary level seemed to me more apropos. Besides, I think we shall see changes and enlargements coming to the Alabama operation.

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post #18 of 22 (permalink) Old 04-08-2010, 01:33 PM
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What do you mean by the Alabama experiment? I know they assemble the ML-Class there but I don't know what else. Like Toyota and some of the other foreign automobile companies, they run non-union shops here.
Well, the intent to enlarge MB presence in the US market, to which it is added the abundant experienced labor available at rates under the German standard, the ability to run a non union shop, and the plentiful assortment of vendors make it almost essential to expand the US operation. However, UAW leaders are not known to remain inactive and if MB does not change the focus it had with Chrysler executives, it may end up in a test of endurance for the Stuttgart boys. The fact that the Nissan Tennessee is a union shop would not help at all. So we'll have to wait.

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post #19 of 22 (permalink) Old 04-08-2010, 03:14 PM
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WOW.. So I assume that profits from the sale of Mercedes in the U.S go to Germany?
So it is with Ford's manufacturing facilities in Europe and other places in the world.

The wages, income taxes paid by the workers, property taxes, money paid to suppliers (and the resulting wages and taxes), utility costs, and various other things all stay in the U.S. economy (more specifically, the Alabama economy).

The profits repatriated to Germany are relatively trivial compared to the money that stays here.

Remember, Daimler AG sells to dealerships who resell to us. Their profit is the difference between what the dealer pays and what it costs them to build the vehicle. The dealer pays taxes on profits earned from the retail sale of vehicles, and the buyer pays sales taxes to state and local governments on that price.

Daimler AG may or may not pay income taxes in the U.S. before their profits are repatriated; that depends on the treaty agreements we have with the German government. Usually a company only pays income taxes once--either in the country where the profits were earned or the country where the company is chartered. Those issues are resolved by treaty between countries.

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post #20 of 22 (permalink) Old 04-08-2010, 03:17 PM
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The Alabama plant builds ML, GL, and R-class and in the future the C-class. Unlike the first three, the C-class operation there won't be the only one in the world.
Given that those three are not hot selling models for Daimler AG, I wouldn't be worried about any dramatic impact on the balance of payments.

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