Of all the current Mercedes models, none has fallen under more scrutiny than the E-Class.  After recalling 1.3 million vehicles, the largest recall in Mercedes' history, the quality of the E-Class and Mercedes in general have both been questioned.

Today, Reuters is reporting that Mercedes will start producing all next-generation E-Class models in-house.  Currently, Magna International produces the four-wheel drive version of the E-Class, with an output of about 20,000 vehicles per year.  The switch, however, will take time - the contract with Magna International doesn't expire until 2010, when the next E-Class is expected to be released.

Does the switch from a third party manufacturer to in-house production have something to do with quality issues? Maybe. I don't think anyone is going to admit it, but the only way to have complete control over the quality of a product is if you manufacture it yourself.   I'm sure this played at least some part in Mercedes choosing not to renew their contract with Magna.

To check out the full story over at Reuters, click here.