[onewhippedpuppy]

Originally Posted by dd74

One question I have involves why the foreign models made domestically are still more expensive than domestic models.

The ML-350 Mercedes Benz SUV is the same size as the Mercury Mountaineer. Both are upscale. Even with labor costs factored in, the Mercury is much less than the Mercedes, yet the Mercedes is made here. I have to figure that build quality of both vehicles is somewhat equal, and where they're built - the Mountaineer is built in St. Louis, the Mercedes in Alabama - is on American soil by American workers.

I'm not exactly suggesting the ML-350 should cost exactly the same as a Mountaineer, but shouldn't the ML be cheaper for the U.S. market than, for example, the Canadian market (I think they're roughly the same price in either country), simply because the ML is made domestically by American workers?

Umm, why? Mercedes-Benz is not a charity, they have no obligation to sell their products cheaply. Even if the actual cost to produce an ML and Mountaineer is the same (which I doubt), Mercedes is an upscale luxury product that costs more money. They will sell their products for as much as possible.

Of course, it's a silly comparison because a Mountaineer is not a competitor to an ML. Good luck finding a Mercedes customer that cross-shops Mercury. Further, go drive both of them, I doubt you'll find the Mercury equal to the Mercedes. A more valid comparison would be between an ML built in an American plant vs in Germany. But again, why would Mercedes sell them at a discount if they are still selling? Lower costs equals more profit, which is pretty much the point of any business.