The decision by Mercedes executives to take full control of the venture was consistent with its strategy for leveraging its
engineering skills and broadening the company's appeal beyond the luxury segment of the automobile market. As
Mercedes chairman Helmut Werner said, "With the new car, Mercedes wants to combine ecology, emotion, and intellect."
Approximately 80 percent of the Smart's parts are components and modules engineered by and sourced from outside
suppliers and subcontractors known as "system partners." The decision to locate the assembly plant in France disappointed German labor unions, but Mercedes executives expected to save 500 marks per car. The reason: French workers are on the iob 275 days per year, while German workers average only 242 days; also, overall labor costs are 40 percent lower in France than in Germany.
The decision by Mercedes executives to take full control of the venture was consistent with its strategy for leveraging itsengineering skills and broadening the company's appeal beyond the luxury segment of the automobile market. AsMercedes chairman Helmut Werner said, "With the new car, Mercedes wants to combine ecology, emotion, and intellect."Approximately 80 percent of the Smart's parts are components and modules engineered by and sourced from outsidesuppliers and subcontractors known as "system partners." The decision to locate the assembly plant in France disappointed German labor unions, but Mercedes executives expected to save 500 marks per car. The reason: French workers are on the iob 275 days per year, while German workers average only 242 days; also, overall labor costs are 40 percent lower in France than in Germany.
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