The topsy turvy sales have forced companies to alter their strategies so as to maintain the figures in green. Some companies increase the price of their products, some boost marketing/advertisings, some eliminate trivial expenses while some are bold enough to invest on new product development. Different companies select different strategies to sustain in the market. Mercedes-Benz lost its top spot in the premium segment when the company lost its market to BMW in 2005. Later in 2011 the company was pushed back further to the third spot by Audi (globally). Hence the company decided to opt for some new strategies.
Mercedes-Benz has decided to cut down manufacturing costs by clubbing up manufacturing lines. Presently Mercedes-Benz produces its diesel and petrol engines on independent lines which consist of four and six-cylinder engines. By unifying the production line, the company foresees a profit, hence ready to invest in the additional equipment. This line is expected to reduce the change over time between models, it will be equipped with additional features promoting agile production. Mercedes-Benz is adapting this line to meet the fluctuating demand. The company had to adapt to this strategy as the products are diversified and volumes are low in number.
The company said that it is building a scaled versioned of agile manufacturing system in the China engine plant. This plant was opened last week with a capital of Rs. 3400 crores, which is also the first engine manufacturing plant outside Germany in the passenger car segment. Once this production methodology is proven out, it will be applied to mass scale production. This agile production philosophy will ensure brisk delivery of engines based on customer requirements.
The new Mercedes C-Class which is scheduled to launch next year will also be manufactured under the new production strategy. The C-Class will be competing with the BMW 3-series and will be launched in Germany, USA, China and South Africa simultaneously. The Stuttgart automaker will also launch the car in India next year. Mercedes aims to claim the top spot by the end of the current decade.