01 October 2013

Daimler to invest EUR 170 million in new Mercedes-Benz cars plant in Brazil

Stuttgart, Germany/São Paulo, Brazil - 01 October 2013 - Daimler plans to expand in Brazil by adding a new facility to the global passenger car production network of Mercedes-Benz Cars. The next-generation C-Class and the GLA will be produced for the local market in a new assembly plant in Iracemápolis near São Paulo. According to the current planning, the first vehicles will roll off the line as early as 2016. An investment of around EUR 170 million has been earmarked for expansion planned in the first stage.

Andreas Renschler, Management Board member for Production and Procurement at Mercedes-Benz Cars and Mercedes-Benz Vans: “Brazil is an important future market. With our local production we accept the challenge and take on the competition. The new facility stands exemplarily for the expansion of our global production network – we thereby approach our customers even more.” Regarding the strategic importance of the future local production program, Renschler also said: “With the next generation of the C-Class and the GLA, we will be localizing two highly attractive products with top Mercedes quality, for which we see great potential in the Brazilian premium segment.”

With the local production of cars, Mercedes-Benz stands out as the only company to act in all segments of mobility in Brazil, with cars, trucks, buses and vans”, said Philipp Schiemer, CEO Mercedes-Benz do Brasil. “The proximity of our production footprint in São Paulo and Minas Gerais will also allow us to have a greater integration among plants and exchange possibilities for the employees.”

The foreseen production in the assembly plant should reach up to 20.000 vehicles each year. Around 1.000 new jobs will be created in the new facility. Furthermore, this should develop approximately 3.000 new jobs for suppliers. Daimler's country company Mercedes-Benz do Brasil will soon complete the purchase of land for the future plant premises in Iracemápolis near São Paulo, allowing for the start of the building preparations.

Source: Daimler