BMW and Mercedes to cooperate on U.S. vehicle preparation

Interesting | December 14th, 2009 by 9

A recent report by Automotive News outlines a five-year deal signed between BMW and Mercedes-Benz USA regarding preparing vehicles coming through the Port of Baltimore. …

A recent report by Automotive News outlines a five-year deal signed between BMW and Mercedes-Benz USA regarding preparing vehicles coming through the Port of Baltimore.

The deal applies to MINI automobiles as well and BMW’s plan is to use the MB’s vehicle preparation center to inspect, process and repair all vehicle coming through the center. The deal goes in effect starting March 1st and both brands see this agreement as beneficial for them.

Jim O’Donnell, president of BMW of North America, told Automotive News the deal will save BMW time and money.

BMW and Mercedes to cooperate on U.S. vehicle preparation

BMW currently has several Vehicle Distribution Centers in the U.S.:Port Hueneme in Oxnard, California (approximately one hour West of L.A., just off the Pacific Coast Highway) and a similar facility in New Jersey.
BMW anticipates about 50,000 cars destined for the central region, which includes Chicago, will be prepared by Mercedes-Benz.

At the moment, BMW vehicles come in through Charleston and are shipped to BMW’s factory in South Carolina for pre-delivery work.

As O’Donnell said, there will also be significant savings in shipping fees.
The shipping distance is also shorter from Baltimore. “Logistically, we will save a reasonable amount of money,” O’Donnell said.

A final quote from Automotive News:

Ernst Lieb, CEO of Mercedes-Benz USA, called the deal “a win-win-situation”.

Lieb said Mercedes-Benz has both the manpower and the space to service BMW vehicles. He said “there are other opportunities” for cooperation between the two German competitors. Lieb said the two companies are evaluating whether to use a joint shipping company to handle their brands once the cars are processed in Baltimore.

  • tiM3

    If this is the case, why has BMW announced that it will raise the Destination & Handling charge by $50 effective January 1?

    • Artmic

      Good question, i guess they want to make up for a weak dollar.

  • viper

    I also hear that bmw will change its name to bMBw = bayersiche Mercedes Benz Werke.

    • Babken

      viper,
      As always you make stupid statements. This case testifies to the solidarity of the German nation. BMW makes better automobiles anyway.

      • viper

        as always , I hope u will understand my words when u reach my level of intelligence

  • 100$ GUY

    Good question, why raise the shipping and handling fee?

  • Babken

    Because the cooperation is in effect starting from the 1st of March 2009. Besides when the decision was made BMW and mercedes hadn’t concluded this agreement.

    • tiM3

      I believe the negotiations for this have been going on for some time now. This still doesn’t answer why, if the cooperation is to offset cost, there has been a price increase on the Destination & Handling.

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