This may not seem like the ideal time to pour a lot of money into selling big-ticket luxury goods in New York City, but Mercedes-Benz USA says it is roaring ahead.

Mercedes, the German carmaker and a unit of Daimler A.G., said on Monday that it would spend $220 million to build a new flagship sales and service center under a luxury apartment complex planned on the West Side of Manhattan. The dealership, which would occupy parts of the first two floors of the complex and three levels below ground, would replace one that has operated near the eastern entrance to the Lincoln Tunnel since 1965.

“We’re not following a hunkering-down approach to this situation,” said Donna Boland, a spokeswoman at the headquarters of Mercedes-Benz USA in Montvale, N.J. “This has been in the workings for years. No, we did not dial back.”

Mercedes-Benz car sales in the United States are down 4.7 percent this year, after plunging 24.5 percent in October. But the company is counting on a rebound before the new dealership would open in 2011, Ms. Boland said.

It would sit at the base of a high-rise apartment tower proposed by Two Trees Management, a development company founded by David C. Walentas. Two Trees has proposed to build 918 units of housing and a new home for the Police Department’s horses on the site, between 53rd and 54th Streets on the east side of 11th Avenue. Through a spokeswoman, Two Trees said it planned to forge ahead in seeking city approval for the $700 million project.

Ms. Boland said Mercedes has about 200 employees in Manhattan, between its dealership on West 41st Street and a showroom on Park Avenue. She said the company, which did not seek any financial aid from the city government, expected to employ at least as many when the new dealership opens.

http://cityroom.blogs.nytimes.com/2008/11/18/what-recession-mercedes-showroom-plan-races-ahead/?hp

It's like building a brand new M-100. Beautiful but who can afford to buy into one?

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1974 240D 3.0L 4(M) - 250K -OM617.910 + 300D FW + Rajay turbo power!
1977 6.9 3(A) - 84k

Actually, its probably a good time to build for the future. They should be able to get contractors lined up easily. Cost of materials will probably be cheaper. The city should be more helpful in getting the required permits.
Tom

Smart move. Either way the city is still awash in money.

Besides by the time its up and running in 2011 we should be out of this.

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1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200