Mercedes-Benz continues to expand investment
|Mercedes-Benz Vietnam will keep expanding investments in the coming time despite a strong drop in the local market, plus disadvantages for local auto manufacturers as the import tax on completely-built-up cars is on the decline.
Michael Behrens, CEO of Mercedes-Benz Vietnam, said the economic downturn has prompted some auto producers to shift their investments to regional countries. However, Mercedes-Benz will not do the same.
Mercedes-Benz will continue to invest US$9 million in the ED coating plant using the modern technology Zicrobond which can prevent corrosion and heat. The plant will be operational in next year’ first quarter.
Vietnam is the second country to use this environmentally-friendly technology after Germany. Mercedes-Benz will continue to apply this technology in other countries.
Behrens said that the firm would invest more in production lines in Vietnam to provide a wide range of car models for customers. At the Vietnam Motorshow which will take place in Hanoi this week, Mercedes will introduce its new GLK models.
The production of new GLK models is also an investment of the German-invested auto manufacturer. It is because when a new car model is launched, the manufacturer will need to spend a huge sum on production and assembling equipment, and it is not easy to recover capital for this investment.
“We see Vietnam full of potentials despite current difficulties and believe that the Government will offer supports to help the economy and industries recover,” said Behrens.
Mercedes-Benz opened four dealers in HCMC, Danang, Haiphong and Can Tho in the past year with a total investment of US$13 million. Currently, Mercedes is having 12 sale and after-sale agents nationwide and will open some more agents in the coming time.
Source: The Saigon Times Daily