ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, January 4, 1996 TAG: 9601040045
SECTION: BUSINESS PAGE: B8 EDITION: METRO
DATELINE: DETROIT
SOURCE: Associated Press
Mercedes-Benz took the wraps off its first sport-utility vehicle Wednesday, unveiling a prototype designed to compete in one of the auto industry's hottest markets.
The German automaker plans to build the new vehicle in its first U.S. plant in Tuscaloosa, Ala. Its rounded design, from exaggerated teardrop headlights to a Lincoln-style wheel cover on the rear hatch, is a radical departure from Mercedes' standard for conservative, understated styling.
Mercedes executives unveiled the AAV, for All Activity Vehicle, at the North American International Auto Show. They said the production model is likely to be somewhat less aggressive in appearance than the show car.
``It shows you, really, the direction,'' said Andreas Renschler, president and chief executive of Mercedes-Benz U.S. International Inc., the company's U.S. manufacturing unit. ``You will find a lot of elements from the show car later on in the actual car.''
The new Mercedes is scheduled to go on sale in the United States in September 1997 and in Europe and elsewhere in 1998.
Mercedes plans to sell 60,000 to 70,000 AAVs a year, with about half of those in the United States. The U.S. price will be in the mid-$30,000 range, making it competitive with the top-end versions of the most popular sport utility vehicles, the Ford Explorer and Chrysler's Jeep Grand Cherokee.
The effort is a $1 billion gamble for Mercedes, but one its executives said they were convinced would pay off by attracting new customers.
LENGTH: Short : 39 lines ILLUSTRATION: PHOTO: The prototype is nothing like Mercedes' usual style.by CNBAP