The Associated Press is reporting today that DaimlerChrysler has plans to open a Mercedes S-Class production facility in Malaysia, with vehicle assembly expected to start in mid-2007.

Both the Mercedes E-Class and C-Class models are already produced in Malaysia, and the company also has additional production plants in Thailand, Vietnam and Indonesia.

This year, the Mercedes Car Group sold 97,200 vehicles in the Asia-Pacific region.  By establishing local production facilities for imported components (such as the S-Class facility mentioned above), DaimlerChrysler and other automakers are able to avoid paying import taxes on cars sold in their respective Asian countries. 

And you thought they just wanted to provide further stimulation to help Malaysia's recently expanding economy.

For more info, you can check out the full article over at MSN Money by clicking here.