05 October 2012

Daimler to invest around $170 million and create 850 new jobs in Argentina

Buenos Aires, Argentina/Stuttgart, Germany - 05 October 2012 - Yesterday, during his tour of Latin America, Daimler CEO Dieter Zetsche announced that the Group would invest around $170 million in its facility in Argentina in the next few years. At an official meeting with Argentina’s President Cristina Fernández de Kirchner in Buenos Aires, Zetsche said that the investments would be made in the area of new commercial vehicle models targeted primarily at the Latin American market. In addition, Daimler will create 850 new jobs at its Centro Industrial Juan Manuel Fangio plant in Buenos Aires. As a result, the facility’s workforce will increase by 40 percent. 

“In the next few years, we will invest more than $170 million in the Juan Manuel Fangio plant here in Buenos Aires in order to prepare it for the production of new bus, truck, and van models,” said Dieter Zetsche, CEO of Daimler AG. “With this investment, we are highlighting the fact that Daimler is one of the leading commercial vehicle manufacturers in Argentina and also one of the region’s key employers.” 

Daimler will produce a series of new Mercedes-Benz brand commercial vehicles in Argentina. They will include a midsized van, the Atron 1624 and Atron 1634 trucks, and the LO915, OF1722, and OH1518 bus chassis. More than 1,800 employees in Buenos Aires manufacture the current Sprinter model, as well as trucks and chassis for city buses. That makes Daimler the country’s only automaker to cover the entire commercial vehicle segment. “Because Argentina has demonstrated robust economic growth in recent years, it will remain a very promising market for us,” added Zetsche. “At the same time, Mercedes-Benz Argentina and the Centro Industrial Juan Manuel Fangio plant are important elements of our global production network.” 

Mercedes-Benz’s first production facility outside Germany was established in Argentina 61 years ago. Since then the plant has produced more than 500,000 vehicles, including over 200,000 Sprinters, 180,000 trucks, and 100,000 buses. Early this year, Sprinter production at the plant was switched to the highly successful European model. The Sprinter is offered mainly as a bus variant in Latin America, where it is exploiting the rapidly rising demand for passenger transport vehicles. The Sprinter — Mercedes-Benz Vans’ flagship vehicle — is a popular export model that is shipped to around 50 countries worldwide, including Brazil, South Africa, and Australia. 

Since the beginning of this year, Mercedes-Benz has also been manufacturing the OM651 engine — the latest diesel engine from Mercedes-Benz — in Argentina. The OM651 is manufactured exclusively in Germany and Argentina. Daimler AG invested more than €100 million in the plant in order to prepare it for the production of the new engine and the Sprinter model. 

Source: Daimler