MLK CUV Markets to Include U.S.

DaimlerChrysler AG's new small cross/utility vehicle planned for the Mercedes brand will be a global vehicle, with North America among the destined markets, a spokesman tells Ward's.

The new 5-passenger CUV, reportedly to be called the MLK, will slot below the M-Class and be assembled at DC's Bremen, Germany, plant that currently builds the C-Class, SL and SLK passenger cars.

The spokesman says it is too early to say if the vehicle will undergo a staggered launch for the various major markets. It is expected in the 2007-2008 timeframe.

In terms of volumes, he cites the BMW X3 (expected to be the MLK's main competitor), with annual sales of about 90,000 units, and M-Class sales of about 80,000. “That seems to be the market potential for the new CUV,” he says.

The decision to build in Bremen was a blow to the 1,500 workers at the plant in Juiz de Fora, Minas Gerais. Brazil. That facility, which will build out production of the A-Class in September, was preparing to assemble the new Smart Formore CUV for export to the U.S. and Europe in 2006 when financial woes at Smart led to cancellation of the Formore program.

Juiz de Fora will remain in operation, doing complete-knocked-down (CKD) assembly of the C-Class, until additional work can be found.