Daimler has announced a new facility in Brazil specifically earmarked for the next C-Class and GLA compact crossover. Brazilian president Dilma Rousseff jointly signed the framework contract with Andreas Renschler, Management Board member for Production and Procurement at Mercedes-Benz Cars and Mercedes-Benz Vans, and Philipp Schiemer, CEO Mercedes-Benz do Brasil & Daimler Latin America, today.
An investment of around EUR 170 million will be made in the first round and the production facility is expected to go operational by 2016.
The new plant will facilitate 1000 jobs and an additional 3000 jobs at the suppliers’ end. The assembly plant will have a capacity of close to 20,000 vehicles every year. 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.
Daimler AG’s plant in São Bernardo do Campo is the largest outside Germany and the only one, in which trucks, bus chassis and assemblies such as engines, transmissions, axles and truck cabs are produced at the same location. The former passenger car plant in Juiz de Fora, has been producing the Mercedes-Benz Actros and Accelo light-duty truck for the Latin American market since 2012.
Brazil was chosen as the location for Mercedes Benz’s next plant thanks to the long-standing experience with local production, Mercedes-Benz do Brasil’s very good network and its strong position on the Brazilian commercial vehicles market were significant factors in the current decision for the location of the new passenger car assembly plant.
Andreas Renschler said “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.”