1. AED/ACCE Joint Winter Meeting
Angela Grace
Blackshaw Partners LLC
February 4, 2016

2. How Expansion is often Sexier than Original Investment
You MUST understand the compelling factors:
1. Business Case – absolutely critical!
2. Management Decision-making
3. Workforce Development for the long haul

3. Andreas Renschler Renschler set up the Mercedes-Benz plant in Tuscaloosa, Alabama, in 1993, after this, the region became a center of the automotive industry in the southern United States.

4. Case Study – MBUSI in Vance, AL
To date, Mercedes-Benz has made a $4.5 billion capital investment in the Tuscaloosa operations.
More than 2.2 million vehicles have rolled off the plant's line for customers around the world.
Herr Renschler helped set up a German School in Tuscaloosa, AL
He also established an Academic Foundation

6. Original M-Class

7. Expansion = Big Money!
Mercedes invests $1.3 billion to expand Alabama factory - September 18, 2015
“The plant expansion for Vance includes a new Body Shop, major enhancements to the SUV Assembly Shop as well as upgraded logistics and IT systems. State-of-the-art technologies and an end-to-end digitization of production processes enable a highly flexible production” – Markus Schaefer, President MBUSI

8. Supply Chain Expansion
German strategies vs. Japanese supply chain expansion models
Politics – internal and external
What NOT to do

9. Comparative Case Study: VW
What were they thinking?
Wrong model for the wrong market
Timing problem – way too late!
Management Solutions…..?

10. Dr. Wolfgang Bernhard

11. The Moral of the Story……
Deepen relationships with your existing business management both here and abroad
Help them with new business development
Balance new FDI with Expansions
Learn from your mistakes and help educate your companies – This is America after all!

12. Thank you for your time!
Angela Grace Executive Search and Consulting Blackshaw Partners LLC Atlanta/Berlin/Los Angeles/Tokyo/Qingdao (205)