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COMMONWEALTH OF AUSTRALIA
Copyright Regulations 1969
WARNING
This material has been reproduced and communicated to you by or on behalf of Monash University pursuant to Part VB of the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under the Act.
Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Do not remove this notice.
ISSN 1940-204X
Mercedes-Benz
All Activity Vehicle (AAV)
Tom Albright
The University of Alabama
Introduction
The AAV Project Phases
During the recession beginning in the early 1990s,
Mercedes-Benz struggled with product development, cost efficiency, material purchasing, and problems in adapting to changing markets. In 1993, these problems caused the worst sales slump in decades and the luxury carmaker lost money for the first time in its history. Since then, Mercedes has streamlined the core business, reduced parts and system complexity, and established simultaneous engineering programs with suppliers.
In its search for additional market share, new segments, and new niches, Mercedes started developing a range of new products. New product introductions included the C-class in 1993, the E-class in 1995, the new sportster SLK in 1996, and the A-class and the M-class in 1997. Perhaps the largest and most radical of Mercedes’s new projects was the All
Activity Vehicle (AAV). In April 1993 Mercedes announced it would build its first passenger-vehicle manufacturing facility in the United States. The decision emphasized the company’s globalization strategy and desire to move closer to its customers and markets.
Mercedes-Benz United States International used function groups with representatives from every area of the company (marketing, development, engineering, purchasing, production, and controlling) to design the vehicle and production systems. A modular
Copyright Regulations 1969
WARNING
This material has been reproduced and communicated to you by or on behalf of Monash University pursuant to Part VB of the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under the Act.
Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Do not remove this notice.
ISSN 1940-204X
Mercedes-Benz
All Activity Vehicle (AAV)
Tom Albright
The University of Alabama
Introduction
The AAV Project Phases
During the recession beginning in the early 1990s,
Mercedes-Benz struggled with product development, cost efficiency, material purchasing, and problems in adapting to changing markets. In 1993, these problems caused the worst sales slump in decades and the luxury carmaker lost money for the first time in its history. Since then, Mercedes has streamlined the core business, reduced parts and system complexity, and established simultaneous engineering programs with suppliers.
In its search for additional market share, new segments, and new niches, Mercedes started developing a range of new products. New product introductions included the C-class in 1993, the E-class in 1995, the new sportster SLK in 1996, and the A-class and the M-class in 1997. Perhaps the largest and most radical of Mercedes’s new projects was the All
Activity Vehicle (AAV). In April 1993 Mercedes announced it would build its first passenger-vehicle manufacturing facility in the United States. The decision emphasized the company’s globalization strategy and desire to move closer to its customers and markets.
Mercedes-Benz United States International used function groups with representatives from every area of the company (marketing, development, engineering, purchasing, production, and controlling) to design the vehicle and production systems. A modular