German luxury carmaker Mercedes-Benz Thailand has opened a new vehicle preparation centre with an investment of 2 billion baht in Samut Prakan to support its five-digit annual sales volume locally.
Mercedes-Benz hired Bangchan General Assembly Co (BGAC) to enhance pre-delivery inspection of cars at the facility.
BGAC is a subsidiary of Phra Nakorn Automobile Co, a Thai car distributor, parts maker and vehicle assembler for India's Tata and China's Foton.
The centre is located on 172 rai on Bang Na-Trat Road KM 30 and takes up 100,000 square metres. Bank of Ayudhya is the company's lender.
BGAC managing director Vunchai Jungsanguanpornsuk said the new centre was relocated in early October from the previous location on Bang Na-Trat Road KM 19.
The new location has an inspection capacity of 20,000 cars a year, compared with 12,000 cars at the old one.
"Both facilities remain in operation for Mercedes-Benz, with the one at KM 19 including a parts distribution and training centre," he said.
Michael Grewe, Mercedes-Benz's president and chief executive, said BGAC has been its authorised vehicle inspection firm since 2001 and its new 10-year contract will run from 2018 to 2027.
With co-management with BGAC, all car-inspection procedures are in accordance with policies and guidelines of the Stuttgart-based Daimler under its plan to provide flawless customer service with zero defects, he said.
"All 49 imported and locally-assembled models will be held to the same inspection standards," he said.
Mercedes-Benz has a local partnership assembler Thonburi Automotive Assembly Plant Co in Samut Prakan, which also make its plug-in hybrid electric vehicles.
Mr Grewe said the company's expansion plan for the parts distribution centre and training centre on KM 19 is part of its three-year plan that culminates in 2019, but he did not disclose an investment budget.
The area of its existing warehouse will be expanded from 3,500 sq m to 15,000 sq m, which is scheduled to be completed in 2018, aiming to store 120,000 genuine spare parts next year from 20,000-30,000.
For the training centre, Mercedes-Benz will start the expansion on the same location next year from 1,100 sq m to 13,000 sq m, which is due to be complete in 2019.
Mercedes-Benz reported its sales from January to September rose by 19.14% to 10,812 vehicles.
Last year, Mercedes-Benz posted 11,844 units sold, down by 7.8% for the first time in 16 years.