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Old 26th September 2011, 12:12   #1
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Exclamation Force Motors to assemble engines for Mercedes S-Class

Source: IAB

The decision was taken by Mercedes Benz India Pvt. Ltd after the government raised customs duty on import of pre-assembled parts from 10% to 30%.
The step is implemented to keep the price of the S-Class at a competitive level. The new S-Class with a locally assembled heart would be available in the next 4-5 months.
The engines for the S-Class would be assembled by Force Motors Ltd which assembles engines for the C- and E- Class models.
For a fact, Mercedes Benz India has been losing Rs. 10 lac on every S-Class sold because of the additional 20% duty since March 2011. Mercedes Benz India would have been more comfortable if they were informed beforehand about the change in duties as it takes 8-10 months to develop a new assembly line.
On 28th February of this year customs duty was raised from 10% to 60% on pre-assembled parts such as engines which brings it on par with the CBU units due to the taxation.
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Old 26th September 2011, 12:15   #2
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Default Re: Force Motors to assemble engines for Mercedes S-Class

This is good news for Force. I wonder how many Merc owners must be knowing that their engine has been assembled by Force Motors.
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Old 27th September 2011, 01:40   #3
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Default Re: Force Motors to assemble engines for Mercedes S-Class

Not many in fact. The majority assume the engine comes as a single piece from Germany and is simply put into the car here.

But Even though Force Motors puts them together, there seems to be no difference in quality. So I guess this is a welcome move by MB.
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Old 27th September 2011, 12:02   #4
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Default Re: Force Motors to assemble engines for Mercedes S-Class

So we can expect truck and bus engines to be assembled by Force for MB soon. If they are successful, then, can we hope for the high selling CBUs transforming to SKD soon?
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Old 27th September 2011, 17:06   #5
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Default Re: Force Motors to assemble engines for Mercedes S-Class

Damn, I had no idea Force does high quality work like assembling engines for MBIL.

The S-class is due for a replacement next year, not sure if it would be a good time to begin assembling engines for the current model. I presume the new model will have a new heart too.
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Old 27th September 2011, 17:42   #6
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Default Re: Force Motors to assemble engines for Mercedes S-Class

Which engine are they talking about? V6 diesel? E also uses the same.
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Old 27th September 2011, 17:43   #7
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Default Re: Force Motors to assemble engines for Mercedes S-Class

As long as Force is doing a great job with the assembly and not affecting the quality of the final product in any way, this is good news for the market.

And surely enough MBIL wouldn't just hand over the contract unless they're throughly satisfied with the capability of the company.
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