The deal is set to affect cars coming in from the Baltimore commercial port. Signed over a time span of five years, the agreement is regarded as being fruitful by both parties. Beginning March 1, 2010 the two brands will use the Mercedes-Benz vehicle preparation center to inspect, process and repair all pre-delivered vehicles.
Jim O'Donnell, president of BMW of North America, told Automotive News the deal will save them time and money and expects around 50,000 vehicles to be prepared by Mercedes-Benz.
At the moment BMW cars arrive in Charleston port and are then shipped to the German brand’s factory in South Carolina for pre-delivery work, so the deal does makes economic sense, especially because the expansion of BMW's factory in Spartanburg, S.C. “The plant is no longer appropriate once the new X3 (crossover) starts to be built next year," said O'Donnell.
Jim O’Donnell revealed that the idea of an agreement between the two was forwarded by BMW’s purchasing department, but declined to enter into the financial details of the deal.
Ernst Lieb, CEO of Mercedes-Benz USA, regarded the deal “a win-win-situation” and confirmed the two companies are evaluating whether to use a joint shipping company to handle their brands once the cars are processed in Baltimore.
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