Mercedes invest nearly £2.5b in German plants

Posted on 11 Sep 2014 by Victoria Fitzgerald

Car manufacturer Mercedez-Benz is ramping up its international activities by investing nearly £2.5b in its German plants.

Almost £1b each will be plugged into the Sindelfingen and Untertürkheim plants, the first of which is primarily used for future products and the latter investment to expand engine production.

In addition, the firm’s Bremen plant will be developed, as well as financial support being poured into Rastatt, where B-Class electric drive has been integrated into series production.

Board member for production and supply chain management, Markus Schäfer, said the developments were part a realignment of the automotive manufacturer’s passenger car activities.

He added: “We want to continue to grow and will significantly increase our production capacities in the coming years. At the same time we want to permanently and sustainably strengthen our competitiveness with a high-performance organisation.

“Under our previous production structure, the individual plants operated largely autonomously. Now, manufacturing will be organised according to product architectures, independent of individual locations.”

Mercedes is launching 18 vehicles across eight locations worldwide, including its latest C-Class sedan. The firm will have produced 12 new models by 2020.