Mercedes-Benz S500L

25 years ago, Mercedes-Benz began assembly of the S-Class (the W126) for the first time in Malaysia and at RM123,282 without insurance, the 380SE was the most expensive locally-assembled (CKD in industry-speak) model in Malaysia. Besides the 380SE, the 280SE was the only other CKD model priced over RM100,000 while the next closest was the BMW 520i at RM65,500. Yes, those really were the prices in the early 1980s…

The W126 380SE was the first S-Class to be assembled in Malaysia 25 years ago. Its price then - RM123,282

From what I can recall, when the 380SE was launched by C&C Bintang and the price announced, there did not seem to be any gasp of surprise (or maybe I just don’t remember it after a quarter of a century!) but yesterday, when Mercedes-Benz Malaysia (MBM) introduced the new CKD S500L to the media and said it costs almost RM1 million – RM998,888 without insurance, to be exact – it was a bit amazing that a locally-assembled model could cost so much. For those who can afford such a model, it’s 'value for money’, according to Florian Mueller, Vice-President for Sales & Marketing (Passenger Cars) at MBM, because an equivalent unit imported completely built-up (CBU) from Germany would cost about RM400,000 more. That’s because of the 20% difference between import duties for CKD and CBU cars over 3000 cc, which is why it is advantageous for companies to assemble locally if it makes sense, ie there is sufficient volume to justify the investment.

But does it make sense to locally assemble a car priced at RM1 million when the number of units sold is likely to be very very small. In fact, total S-Class sales this year have accounted for just 10% of Mercedes sales in Malaysia and the S500L might account for just 1%. No, on a commercial basis, it does not make sense and Mr Mueller instead declares that it is a 'statement’ by Mercedes-Benz and demonstrates that they can assemble their flagship model here to the very highest quality standards that the German marque is famous for. His colleague, Dr Alexander Roeder, who is the Vice-President in charge of the manufacturing side at the plant in Pekan, Pahang, confidently said in an interview earlier in the year that 'the quality of Mercedes-Benz cars assembled in Pekan is the same as the CBU models from Germany, otherwise they will not be allowed for sale’.

Mercedes-Benz C, E and S-Class models are assembled at the DRB manufacturing complex in Pekan, Pahang

At this time, other than Stuttgart in Germany, the only other country where the S500L is assembled is Egypt and Malaysia is the first in Asia to assemble the version. Thailand and Indonesia will also be assembling the S500L in due course. Mr Mueller said that Mercedes-Benz could not make use of the benefits of AFTA and assemble the car in one country for distribution around the region as its ASEAN-sourced parts do not meet the minimum requirement of 40% to qualify for preferential import duties. Most of the parts are imported since a local supplier would be unable to make parts at competitive prices for such a small volume but there are some locally-sourced parts such as paint.

The 380SE of 1983 was one of the most advanced sedans of its time, not unusual since Mercedes-Benz has been a pioneer in automobile technology. It was the first volume-produced car in the world to have a standard driver’s airbag and it was also the first CKD model in Malaysia to have an airbag as standard. There were other technological advances like ABS, of course, but it was the airbag that was the big news then,

In 2008, its 'descendant’ is also a leader in automobile design and has numerous technical innovations that are ahead of other models. A dozen are highlighted and these include DISTRONIC Plus which works with Brake Assist Plus to keep the car at a safe distance from another vehicle ahead, infra-red spotlights that enable night-vision, PRE-SAFE which recognizes potential accident situations and activates the various safety devices a split-second earlier to optimize effectiveness, AIRMATIC air suspension with adaptive damping that changes the damping forces within 50 milliseconds, Park Assist which works with a rearview camera to make parking the 5.2 metre long limousine easier and bi-xenon headlights that swivel as the road curves.

There’s 12-way adjustability on the front seats. The seats also have active ventilation and those in front have multi-contour technology to 'shape’ the seat to suit each type of body and give better support. At the rear, a massage function reduces fatigue on long journeys. A scientific study showed that the features in the S500L have a positive effect on the driver’s fitness as stress is lower and this would contribute to safer motoring.

The S500L has a 5.5-litre V8 (mated to a 7-speed automatic transmission) which generates 285 kW/388 bhp and is claimed to be among the most powerful in its class. Maximum torque is 530 Nm and all of it is available between 2800 and 4800 rpm. These outputs enable the S500L to go, it the owner has an urgent appointment, leave the gate and reach 100 km/h in 5.4 seconds; if he is willing to break the law, he will be able to take the car up to 250 km/h which is an electronically-regulated maximum speed. Presumably, someone who can own a car this expensive won’t be concerned about how much fuel it needs to run but for those who do wonder, the consumption (using the NEDC combined cycle) is between 8.5 and 8.3 kms/litre and at today’s rate, a full tank of RON97 fuel will cost RM200.

Undoubtedly, for someone who can afford this limousine, only the best should be offered and Mercedes-Benz Malaysia has provided all the comforts of home and office in the back seat. LCD screens on the back of the front headrests display DVD content so the boss can view the latest electronic annual report of his favourite company or just watch a movie. The audio system is from Harman/Kardon, among the best in the business.

Externally, the S500L looks no different from the S350L and S300L, both of which are also assembled locally. You have to look at the wheels to know it’s a S500L if the owner chooses to not have the badge displayed on the bootlid (some owners prefer not to advertise the fact). Mr. Mueller said the glass is also special for the S500L but most people might not notice the difference.

The response to a question about test-driving the car showed how times have changed between the 380SE launch in 1983 and the S500L launch yesterday. In 1983, when asked the question, the then-MD of C&C Bintang arrogantly retorted: “Does Rolls-Royce lend you a car to test?” (actually Rolls-Royce did, even sending up the Phantom from Singapore for us to test). Mr. Mueller's answer to YS Khong, who asked the question: “Sure, we will have a unit available for you to test but as it is a very expensive car, we can only register one unit for media evaluation.” How times have changed!

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