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Old 02-07-2005, 04:50 PM
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Not sure if this is good or bad news either . . . .

FRANKFURT (Reuters) - DaimlerChrysler has pushed back the U.S. launch of its new Mercedes B-class compact sports wagon, the world's fifth-biggest carmaker said on Monday, blaming the dollar's weakness against the euro.

The decision underscored European manufacturers' sensitivity to a weak dollar despite its recent gains on the euro, which has eased to near $1.2850 from a record high of $1.3667 on Dec. 30.

"It is correct that on account of the current dollar/euro rate we have delayed for the time being the launch of the B-class in the United States," a company spokesman said, confirming a report in the Automotive News industry paper.

But he stressed the delay was only temporary. "As soon as the exchange rate basis is substantially better for us, we will launch the B-class in the U.S. as planned," he said, declining to specify the level at which it would be acceptable to proceed.

He insisted that only exchange rates -- not quality issues that have dented the Mercedes image and held up other launches of late -- triggered the move. The B-class launch in Europe, Canada and Mexico is not at risk.

The B-class, made in Germany and due to be presented at next month's Geneva car show, is a roomier version of the A-class compact. It aims to compete against rivals' small premium cars such as the Audi A3 and the BMW 1-Series.

Former Mercedes Car Group division head Juergen Hubbert told reporters at the Paris car show in September that Daimler expected to sell some 100,000 B-class cars each year around the world once production was fully ramped up.


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