Daimler plans expansion of Mercedes-Benz Cars production network

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The Daimler AG Board of Management has decided to expand the Mercedes-Benz Cars powertrain production network. Following approval by the Supervisory Board, additional capacities for transmission assembly are now planned to be established at the Romanian Daimler subsidiary, Star Transmission. For the production of a new generation of automatic transmissions more than 280 million euros shall be invested in Romania. Overall, the company plans investments of more than 300 million euros there.

Andreas Renschler, Member of the Daimler Board of Management for Manufacturing and Procurement Mercedes-Benz Cars and Mercedes-Benz Vans, explains: "The expansion of our production network to include an additional location for transmission assembly is designed to perfectly complement our existing capacities. Our goal here is to serve the high customer demand with even greater flexibility in the future."

Additional capacities will be built up in view of the high capacity utilization as well as the lack of space for further expansion of transmission production in Stuttgart. "Star Transmission has been a reliable partner of our German powertrain locations for over 10 years. According to the current planning status and based on our excellent experience with Star Transmission, the preferred option for providing the additionally required assembly capacities in a flexible manner is to expand the activities there," explains Peter Schabert, Head of Powertrain Production and Head of the Mercedes-Benz Untertürkheim plant, referring to the plans for the future production network for transmissions. "Our Stuttgart transmission plant will remain the heart of transmission production for Mercedes-Benz Cars and will act as the center of competence in this production network."

Wolfgang Nieke, Chairman of the Works Council for the Mercedes-Benz Untertürkheim plant and Passenger Car Development: "The plant management and works council agreed two years ago, to set up the production of the new automatic transmission and an assembly module at the Stuttgart-Hedelfingen location. The Board of Management thus reaffirmed its commitment to the in-house production of our transmissions. The second assembly module in Sebes will be supplied from our production location. The increased demand for transmissions ensures the long-term capacity utilization of our transmission production at the Stuttgart-Hedelfingen location."

In order to transfer the Swabian expertise appropriately the Romanian employees will undergo a special qualification program. They spend several months at the Untertürkheim parent plant in quality, maintenance and logistics teams in addition to the production areas.

Daimler subsidiary Star Transmission was founded in 2001. At the moment, the company and the roughly 800 employees at the Cugir location produce components for current Mercedes-Benz car engines and transmissions as well as older generations of transmissions for the spare parts business. The decision has already been made to start production of the 5-speed automatic transmission from the middle of this year at the new location in Sebes until its discontinuation. Starting in 2014, the current generation of front dual clutch transmissions will also be assembled there. This will thus provide additional assembly capacities to complement Stuttgart, where the assembly has been concentrated to date. Subject to the support of the Romanian government for the expansion of the production capacities, it is planned that a new generation of automatic transmissions for cars will also be produced in the new production network involving the locations in Stuttgart (full production including assembly) and Sebes (assembly only) starting in 2016.

The reason for these plans is the expected, continually increasing demand for transmissions in line with the Mercedes-Benz 2020 growth strategy. The Stuttgart-Hedelfingen transmission plant, which is part of the Untertürkheim parent plant from an organizational perspective, is today already at full capacity. All available space has gradually been developed in recent years so that the site – due to its special geographical location in the upper Stuttgart Neckar Valley – has reached its maximum possible expansion level and no meaningful options for further expansion of the facilities exist there.

At the same time, any type of capacity expansion at Mercedes-Benz Cars should also contribute decisively to increased profitability in light of the fierce global competition in the premium segment. This premise naturally also applies for transmissions, which are produced in-house in contrast to the approach preferred by the competition. Overall, the future production network for transmissions is designed to ensure that the required unit figures can – even in the future – be provided in a reliable and extremely flexible manner in line with customer expectations while fulfilling the set cost targets.

About the Mercedes-Benz Cars powertrain production network

The Mercedes-Benz Cars powertrain production network consists of several locations in Germany and is being complemented by international production plants in close connection with the increasing production of Mercedes-Benz vehicles in close proximity to markets and customers. The central location here is the Mercedes-Benz Untertürkheim plant, which produces engines, transmissions and axles in a total of six plant sections. In the past fiscal year, Daimler has invested over 900 million euros here alone in the expansion and conversion of the powertrain plant sections as well as in the startup of new products and production technologies and, as a result of high customer demand, has been able to create 350 new jobs. The company is investing more than 800 million euros at the location in 2013.

The Mercedes-Benz Berlin plant produces engines and powertrain components, while the Mercedes-Benz Hamburg plant is responsible for the production of axles and various additional components. Our subsidiary MDC Power in Kölleda/Thuringia is another important engine production location; it recently received the prestigious "Factory of the Year" award. When it comes to the international locations, the Romanian subsidiary Star Transmission is responsible for the production of engine and transmission components as well as replacement transmissions. Starting this year, the Beijing production location (BBAC – a joint venture between Daimler and the Chinese partner BAIC) in China will start engine production in order to supply local production of Mercedes-Benz cars and vans. Starting in 2014 in the USA, Daimler and Nissan will – as part of the strategic cooperation between Daimler and the Renault-Nissan Alliance – start the joint production of 4-cylinder gasoline engines based on Mercedes-Benz technology at the Nissan plant in Decherd/Tennessee. One of the main customers for these engines will be the future C-Class production at the Mercedes-Benz plant in Tuscaloosa/Alabama.

Credits: Daimler AG

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Product offensive in the Mercedes-Benz plant in Bremen: The first units of the new E-Class Coupé and Cabriolet produced

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The first cabriolet and the first coupé variants of the new E-Class model series rolled off the factory line at the Mercedes-Benz plant in Bremen. The classic two-door coupé and the four-seater convertible model are among the most popular vehicles in their respective segments. Around 370,000 coupes and 100,000 cabrios of the E-Class have been delivered to customers up to now.

Andreas Kellermann, Head of the Mercedes-Benz plant in Bremen: "In just 45 minutes, our team completed the model change to the new version of the E-Class Coupé and Cabriolet. A close collaboration throughout the entire process chain from the pressing plant to assembly, including logistics, has made ​​this masterpiece. I am sure that our two new models will be very well received by customers."

About the new E-Class Coupé and Cabriolet

The new Mercedes-Benz E-Class Coupé and Cabriolet features an extensive modernization. The new diesel and petrol engines boast increased efficiency and are all equipped with ECO start/stop function. Intelligent assistance systems like the radar-based COLLISION PREVENTION ASSIST, or the further developed ATTENTION ASSIST, build a superior level of safety. The two sporty members of the E-Class family have a fresh, athletic, striking design and a new, high-class interior. As of June 2013, the coupé and convertible customers are available at authorized dealers.

About the Mercedes-Benz plant in Bremen

With over 12,500 employees, the Bremen plant is the largest private employer in the region. Currently, the plant produces eight models: the C-Class Limousine, the C-Class T-ModelL and the C-Coupe; the E-Class Coupé and Cabriolet; the GLK, the SLK and the SL in Bremen on the same line. In 2012, the plant has produced over 316,000 vehicles - more than ever before. As a competence center for the new C-Class, which arrives in 2014, the Mercedes-Benz plant in Bremen also controls the production of the high-volume series in the foreign factories of Tuscaloosa / USA, Beijing / China and East London / South Africa.

Credits: Daimler AG

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Product offensive - A 45 AMG: First high-performance vehicle built at Rastatt

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Start of production for the first high-performance vehicle at the Mercedes-Benz plant in Rastatt: after the A-Class and B-Class, the first AMG model in the history of the factory has left the assembly left recently. "The A 45 AMG is the sportiest car that ever rolled off the line here. We are very proud to be constructing high-performance vehicles in Rastatt. The team has exemplary integrated the AMG model into the ongoing production of the A-Class. For us, this milestone marks the start of a new era at the Rastatt site," said Peter Wesp, Head of Mercedes-Benz plant in Rastatt.

In the development of the A 45 AMG, the experts from Affalterbach have contributed with their extensive experience in motorsport and the construction of powerful high-performance cars. Thus the A 45 AMG will receive the typical AMG DNA and the brand promise of "Driving Performance" perfectly embodied. This is ensured with the implementation of the AMG-specific powertrain with the performance-oriented all-wheel drive AMG 4MATIC, the AMG sports suspension with independent front and rear suspension and the exclusive interior and exterior features. The Rastatt team has smoothly integrated the production of the volumes of the A-Class AMG model together with the AMG counterparts so that the assembly line is shared with the standard A-Class model. The A 45 AMG boasts a maximum output of 265 kW (360 hp). With the performance-oriented AMG 4MATIC all-wheel drive system, it sets new standards in its segment. The acceleration from zero to 100 km/h takes just 4.6 seconds, while top speed reaches 250 km/h (electronically limited). The high-performance hatchback is designed to appeal to new customers. The target group is between the ages of 30 and mid 40, which is a tad younger than the usual AMG customers.

The A 45 AMG is powered by an AMG 2.0-litre, four-cylinder turbocharged engine, which has been launched into production two weeks ago in the MDC engine plant in Kölleda. There, all BlueDirect four-cylinder engines for the A-Class and B-Class are built as well. Especially for the production of the new AMG engines, a new assembly line was set up at the plant according to the traditional AMG philosophy "one man, one engine". From now, the A 45 AMG can be ordered by clients. Starting June, the first units will be handed over to customers.

For the production of the new compact models in Rastatt, Daimler is investing 1.2 billion euros. 600 million euros were invested in a first stage, including the construction of a new body shop. A further 600 million euros follow in 2012 and 2013 for the second stage. These new investments will be including the reconstruction of the assembly line and the corresponding plant structure.

About the Mercedes-Benz plant in Rastatt

The Mercedes-Benz Rastatt plant employs about 6,500 people, making it the largest private employer in the region. In 2012, over 200,000 compact vehicles rolled off the assembly line at the site. The new generation of Mercedes-Benz premium compact cars will include, in addition to A-Class and B-Class, three sporty, emotional models, including a coupe and an SUV. The five models of the new compact car will be produced in the production network of the Rastatt plant, and from the end of March 2012, at the newly opened plant in Kecskemét, Hungary. Rastatt is the competence center for the production of the A-Class and B-Class. In late 2013, the compact SUV under the name GLA-Class will enter production stage here.

Credits: Daimler AG

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Production milestone at Bremen: One millionth roadster rolls off the line

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The first car with a star to roll off the production line in 1978 at the Mercedes-Benz plant in Bremen was the E-Class Estate. With the introduction of the SL series in 1989, the Bremen team gained know-how on the production of premium roadster. In 1996 came the "little brother" of the SL: the all new SLK. Both models have now reached the third model generation to be assembled at the Bremen factory. The ceremonial handover of the one millionth roadster to its owner gathered around 300 guests at the Mercedes-Benz Customer Center in the city on the Weser river.

Dr. Joachim Schmidt, Vice-President Mercedes-Benz Sales and Marketing, and plant manager Andreas Kellermann handed over the keys of the anniversary vehicle, a black-coloured SL 63 AMG, to a customer from Diepholz / Lower Saxony. "We are very proud to have sent one million roadsters on the road. The three generations of the SL and SLK built at Bremen stand themselves for the technical vehicles advancement and for the of state-of-the-art technology in production. Unchanged remains the passion which the Bremen team manufactures the SLK and the SL with. It makes an important contribution to ensuring that our roadsters are highly sought after worldwide," Kellermann said.

Overview of the roadster production at the Bremen plant

- 1989: Start of production for the SL Series (R 129)
- 1996: Start of production of the SLK (R 170)
- 2001: A new generation of the SL is launched (R 230)
- 2004: The second generation SLK starts assembly (R 171)
- 2011: The new SLK celebrates world premiere (R 172)
- 2012: The new SL comes with an innovative all-aluminum body (R 231)

About the SL and SLK

In 1952, the forefather of the SL came as a racing car on the international circuits. In 1954, Mercedes-Benz launched the first production model: the legendary 300 SL Gullwing. 1963, 1971, 1989, 2001 and 2012 were followed by new generations of the SL roadster series. The early generations were produced at the Mercedes-Benz plant in Sindelfingen. Since 1989, the Bremen has joined the production network for open-top models. Over 675,000 units of the SL rolled off the band after production started in 1954. The iconic sports car finds more and more enthusiastic drivers: in 2012, 10.700 cars were delivered to customers, three times compared to 2011. The United States is by far the largest market for the SL, nearly half of the vehicles being sold there. The legendary roadster is also very popular on the home market in Germany and in Japan. For the assembly of the current series, the Mercedes-Benz plant in Bremen expanded its technological expertise and introduced innovative all-aluminum shell construction standards for future-oriented automotive production. The new SL is up to 140 kg lighter than its predecessor.

In 1994, Mercedes-Benz showcased the compact SLK roadster at the Turin Motor Show as a study. World premiere of the serial model came in 1996 when the "little brother of the SL" celebrated official introduction in Turin. In 2000, the SLK received an extensive facelift. Four years later, the second generation of the SLK was presented at the Geneva Motor Show. 2008 brought the facelift for the second generation. In 2011, the third generation of the SLK hit the market. To date, the SLK has inspired more than 600,000 customers worldwide. In 2012, there were 31,800 deliveries, which makes the SLK the market leader in its segment.

The Mercedes-Benz plant in Bremen

With over 12,500 employees, the Bremen plant is the largest private employer in the region. Currently at the site, eight models are produced: the C-Class Sedan, the C-Class Estate and the C-Coupe; the E-Class Coupé and Cabriolet, the GLK, and the SLK and SL roadsters. In 2012, the plant has produced more than 316,000 vehicles - an all-time record. As a center of excellence for the new C-Class, which celebrates world premiere in 2014, the Mercedes-Benz plant in Bremen also controls the entire production network of the new high-volume series which integrated further foreign factories in Tuscaloosa / USA, Beijing / China and East London / South Africa.

Credits: Daimler AG

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Start of production at Mercedes-Benz plant in Sindelfingen: The first new E-Class rolls off the line

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On the first day of March, the first new E-Class 2013 generation rolled off the production line at the Mercedes-Benz plant in Sindelfingen. Since the assembly of this model series has begun at Sindelfingen about 60 years ago, the E-Class has been widely recognized as the benchmark in its segment. With over 13 million units sold up to date, it easily is the most successful business limousine in history.

"The start of production for our new E-Class represents a milestone in our growth strategy. With the E-Class we set new standards in the luxury class, to optimally meet our customers' demands," said Dr. Wolfgang Bernhard, member of Daimler AG management board in charge with production and procurement for Mercedes-Benz Cars & Mercedes-Benz Vans. "In just 45 minutes, we made the transition from the previous generation to the new E-Class - that is the benchmark."

With the new E-Class, the changeover time between the past and the new model series was significantly reduced - only 45 minutes to ensure that about 2,000 new parts are seamlessly integrated into the new production process. This was made possible by an excellent collaboration between development, planning, logistics and production departments. The entire process chain is located at Sindelfingen and is fully geared to the requirements of the new E-Class: from the pressing plant in charge with the production of the new body panels to assembly and paint finish. In this specific way, the typical Mercedes-Benz top build quality is ensured right from the start.

Dr. Willi Reiss, Head of the Mercedes-Benz plant in Sindelfingen commented: "What our team has done with the launch of the E-Class is great. Only shortly after the release of the new CLS Shooting Brake, we succeeded again in providing a new Sindelfingen top product on the wheels. For this achievement, I wish to thank all the employees involved."

The most visible changes are present on the new front end. The new Elegance and Avantgarde variants are now even more striking and distinguishable. One of the major advantages customers of the new E-Class have is the versatile production process that allows numerous customization options. This means that, throughout the entire life cycle of the model, there will not be any completely identical vehicles. In addition to the new E-Class sedan, the assembly of the the E-Class wagon, E-Class hybrid variants and also the CLS and the CLS Shooting Brake takes place on the same line. Over 500 of some 1,500 jobs were changing the framework conditions for the installation of the new vehicle parts. In total, around 3,400 people were intensively prepared and trained for a period over ten months in advance to the 1st March 2013, the date of transition between the two E-Class model generations.

The new E-Class

With the new E-Class, Mercedes-Benz is not only setting a new standard in the luxury class, but it is also revolutionizing the entire segment. With new and efficient engines, new assistance systems and a new design philosophy, Mercedes-Benz reaffirms its leading position. Both the sedan and the station wagon celebrate world premiere of eleven new or enhanced assistance systems. They combine comfort and safety. The new E-Class also takes a significant step forward in terms of efficiency and ecology with the new powerful BlueDIRECT four-cylinder petrol engines with direct fuel injection. The strong technical package is also reflected in the design. With its new styling, the new E-Class brings efficiency, intelligence and emotion under the same roof.

The Mercedes-Benz plant in Sindelfingen

The Mercedes-Benz plant in Sindelfingen is the world's largest production facility of Daimler AG and the competence center for passenger cars in the upper and luxury class of the global production network of Mercedes-Benz Cars division. In recent years, the staff of more than 22,000 employees has assembled over 420,000 combined units of the C-Class, E-Class, S-Class, CL, CLS Coupé, CLS Shooting Brake and SLS AMG​​.

Credits: Daimler AG

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First Mercedes-Benz CLA Rolls off the Production Line at the Kecskemét plant in Hungary

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Less than ten months after the opening of the Mercedes-Benz plant in Kecskemét, the location has reached the next milestone. With the official start of production of the Mercedes-Benz CLA, the first model exclusively built in Kecskemét is now rolling off the production line as the plant's second product along with the B-Class. On this occasion, plant manager Frank Klein took special pleasure in welcoming Hungarian Prime Minister Victor Orbán and Dr. Dieter Zetsche, Chairman of the Daimler Board of Management and Head of Mercedes-Benz Cars, who both had also attended the plant's grand opening in March 2012.

In his speech, Dr. Dieter Zetsche explained the background of the product decision: "The CLA is based on the Concept Style Coupe, which we introduced last year. The most frequent comment by far was 'Please put this car into series production.' That's precisely what we are doing now." With respect to the excellent performance of the Kecskemét plant's team, Zetsche said: "More than 40.000 B-Class vehicles built here prove that you know how to build great cars. You are doing a first-class job here at the plant." Zetsche also expressed the company's special thanks to all Hungarian partners in the political, administrative and social areas for the continuous, constructive partnership: "We're on a good way to reach our common goal – Kecskemét is developing as a center of the Hungarian automotive industry."

Plant manager Frank Klein added: "The plant's entire team can't wait to get the CLA to our customers as perfectly as the B-Class cars we build in Kecskemét. We aim to follow up seamlessly on what we achieved in our first, very successful production year of 2012." Last year, the Kecskemét plant had reached the first goal to produce more than 40.000 vehicles as planned, thus making an important contribution to the B-Class' best-ever annual sales (worldwide sales of 145,649 units, more than 11 percent over the previous sales record in 2006).

About the Mercedes-Benz Kecskemét plant

The Kecskemét plant and the Rastatt plant together form the production network for the new generation of Mercedes-Benz compact cars. That network significantly contributes to the overall economies of compact car production and allows the flexible and optimum management of both plant's capacity utilization. The Kecskemét plant was opened in March 2012, less than four years after the initial decision for the location, and has since produced the B-Class, which is also built in Rastatt. State-of-the-art, environmentally sound technology is used at the plant. In the meantime, the number of staff has grown from about 2,500 to more than 3,000, in line with the further development of the plant and the preparations for production of the CLA. The plant is the most attractive employer in the region, not least to due to the high attention given to the qualification of its employees. The pioneering efforts of the plant and its Hungarian partners to establish dual vocational and university education based on the German model further contribute to this. Daimler AG and the Hungarian Government in 2012 also signed a joint partnership agreement to establish and reinforce the region of Kecskemét as a center of the Hungarian automobile industry on a long-term basis.

About the Mercedes-Benz CLA

The CLA is set to establish a new segment, with world-leading aerodynamics (Cd = 0.22), avant-garde coupé design and 4MATIC all‑wheel drive (optional). As a new four-door coupé it follows the idea of the CLS, whose design concept has spawned more than its fair share of imitators since its debut in 2003. With its frameless doors, the coupé adopts the design of the Concept Style Coupé into series production.

The newcomer features a radar-based braking system (COLLISION PREVENTION ASSIST) as standard which is able to warn the driver of an obstacle from a speed of 7 km/h and to initiate precision braking when the driver steps on the brake pedal. The new CLA is available for ordering with immediate effect and will be delivered to dealerships beginning in April.

Credits: Daimler AG

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Production anniversary at the Mercedes-Benz plant in Rastatt: Employees build the three millionth compact vehicle

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Solemn anniversary at the Mercedes-Benz plant in Rastatt: today, the three millionth compact vehicle in the history of the site was produced. A customer from Cologne receives the milestone vehicle, an A 200 BlueEFFICIENCY in calcite white paint job. "Since 1997, we are building compact cars here at Rastatt and now the three millionth unit. This figure speaks for our work and for the great experience of our employees," said Peter Wesp, head of the Mercedes-Benz Rastatt facility. "The outlook in the premium compact segment is very optimistic. Over the next decade, we expect an increase of over four million units, making the new compact class vehicles play a central role in our growth strategy - Mercedes-Benz 2020." For the production of the new compact models in Rastatt, Daimler invested a total of around 1.2 billion euros. This year, 500 new permanent jobs have been created so that the plant employs now more than 6,500 people.

The compact vehicles from Rastatt

In 1997, Mercedes-Benz launched the A-Class, which created the vehicle class of premium compact cars. 1,100,000 A-Class cars were have been sold up to 2004, when the second generation was introduced. Over one million vehicles from the next generation were produced at Rastatt. In 2005, the first generation B-Class followed, which was delivered to more than 700,000 customers all around the world within six years.

In September 2011, the new B-Class was the first model of the new compact class generation to enter production at Rastatt. In July 2012, series production of the new A-Class started. Both models record high customer demand: more than 100,000 B-Class vehicles are already on the roads, and for the new A-Class there are already nearly 90,000 orders just five months after the launch. The new generation of Mercedes-Benz premium compact cars includes, in addition to A- and B-Class, three more sporty, emotional models, including a coupe and an SUV. The five compact models will be produced in the production network of the Rastatt plant and at the new plant in Kecskemét, Hungary, which was opened up at the end of March 2012. Three of the five models, comprising the new A- and B-Class and, in the future, also the compact SUV will be assembled at Rastatt. The B-Class is currently being manufactured at both sites.

Credits: Daimler AG

Copyright © 2012, mercedesgla. All rights reserved.

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New production milestone at the Bremen plant: The one millionth Mercedes-Benz C-Class (204 series)

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Production jubilee at the Mercedes-Benz plant in Bremen: the one millionth vehicle of the current C-Class family rolled off the factory on the 13th November 2012. The current C-Class series, including the sedan, wagon, coupe and the GLK variants, is assembled at the Bremen facility on a highly flexible production line. The milestone vehicle is a C 350 CDI BlueEFFICIENCY Estate in polar white exterior paint finish. Andreas Kellermann, manager of the Bremen plant, handed over the keys directly on the shop floor to a customer from Bavaria. "The know-how gained from the one millionth model is very valuable in our preparations for the next-generation C-Class.", said Kellermann.

About the current C-Class and GLK family

Since 2007, the sedan and the station wagon versions of the current C-Class series have been produced in Bremen. In June 2011, the new C-Class Coupé followed. Since 2008, the GLK mid-class SUV has been manufactured on the same assembly line with the C-Class series at Bremen - and, beginning with June 2012, the second generation as well. Regardless of model and equipment, the vehicles can run flexibly in any order on the assembly line - exactly as the customer orders require it. The C-Class is the highest-volume series from Mercedes-Benz - and its importance at the Bremen plant will grow in the future. The location is the center of excellence for the production of upcoming next-generation C-Class starting 2014, and also controls the start-up and production of this high-volume series in foreign works such as Tuscaloosa / USA, Beijing / China and East London / South Africa.

About the Mercedes-Benz plant in Bremen

With over 12,800 employees, the Bremen plant is the largest private employer in the region. Currently at the site, eight different Mercedes-Benz models are being produced: the C-Class Sedan, the C-Class Estate and the C-Coupe with the Black Series version of the C 63 AMG Coupé, the E-Class Coupé and Cabriolet, the GLK and both SLK and SL roadsters. In 2011, the factory built around 313,000 vehicles - more than ever before.

Credits: Daimler AG

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High demand for new compact model: Additional shift for the assembly of the new A-Class at the Mercedes-Benz plant in Rastatt

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For Mercedes-Benz, the launch of the new A-Class was the most successful premiere in history. Since sales release in June, more than 70,000 orders have been received. Due to the positive response, the Mercedes-Benz plant in Rastatt starts up the installation on a three-shift operation beginning this week.

"We have expanded our full-time work force by 500 permanent staff and are now well positioned to deliver the cars to our customers as soon as possible. After the successful launch, we are now producing in three layers so that we can build more A-Class vehicles for our customers," said Peter Wesp, head of the Mercedes-Benz Rastatt Plant. Thus, this facility, as well as its sister plant in Kecskemét, are fully occupied with the production of the new compact models. In order to provide additional capacity for the A-Class, Daimler has also commissioned the Finnish supplier Valmet Automotive with the production of more than 100,000 units between 2013 and 2016.

The Mercedes-Benz Rastatt plant employs more than 6,500 people. The new generation of Mercedes-Benz premium compact cars includes A-and B-Class three more sporty, emotional models, including a coupe and an SUV. The five models of the new compact car will be produced in the production network of the Rastatt plant and the new plant in Kecskemét, Hungary. A-and B-Class, as well as the compact SUV will be built at Rastatt. For the production of the new compact car in Rastatt, Daimler invested a total of around 1.2 billion euros.

Credits: Daimler AG

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Cornerstone Laid for Production of Mercedes-Benz Compact Cars in China

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Beijing Benz Automotive Co., Ltd. (BBAC), the Chinese passenger cars joint venture of Daimler AG and its Chinese partner Beijing Automotive Group (BAIC), celebrated an important milestone yesterday. Representatives from both partners and numerous guests from politics and authorities attended the ceremony during which the cornerstone for a new section of BBAC’s Beijing plant was laid. Vehicles of Mercedes-Benz’ new generation of compact cars are slated to roll off the production line as of 2014.

Ulrich Walker, Chairman and CEO Daimler Northeast Asia: “Together with our joint venture partner BAIC, we are forging ahead with our future-oriented projects in China. We expect local production of our new generation of compact cars to provide additional momentum to our development in this booming segment of the Chinese market.”

Dr. Wolfgang Bernhard, Daimler AG board member responsible for Manufacturing and Procurement Mercedes-Benz Cars & Mercedes-Benz Vans: “Our new compacts are so popular with customers that we will add BBAC as the third pillar of our compact car production network besides the Rastatt and Kecskemét plants in the context of our Mercedes-Benz 2020 growth strategy. With the localization of our new generation of compact cars, we will even further serve demand in China close to the market and to our customers. This strengthens our competitive position.”

In June 2011, Daimler and BAIC had signed a strategic framework agreement which included, besides an expansion of production capacities at BBAC, future local production of vehicles of the new generation of Mercedes-Benz compact cars for the Chinese market. Construction of a new engine plant for production of 4-cylinder gasoline engines, which was also part of the agreement, has progressed far with production slated to start next year. Also well on track are activities to establish a new R&D center, which will mainly focus on vehicle testing and adaptation as well as R&D activities with suppliers. Investment for these projects amounts to about 2 billion euros and is part of the overall investment program, according to which Daimler and its partners are investing a total of about 3 billion euros in China.

About Beijing Benz Automotive Co., Ltd. (BBAC)

Local production of Mercedes-Benz passenger cars began in 2006 at the 50/50 joint venture BBAC with the predecessor of the current E-Class. In spring 2008, the C-Class joined local production as the second model. Since May 2010, BBAC has been producing the current E-Class as a long-wheelbase version especially customized to meet the requirements of the Chinese market. Production of the GLK began in December 2011 as the third model line in BBAC’s Beijing plant.

Credits: Daimler AG

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First new A-Class model delivered at the Mercedes-Benz Customer Center in Rastatt

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The first new A-Class from Mercedes-Benz goes to a customer from Esslingen. Waldemar Epple, director of the Mercedes-Benz Customer Center in Rastatt (MCC), Germany, handed over the keys for a A 180 BlueEFFICIENCY hatchback in jupiter red exterior paint finish. The vehicle features the "Urban" trim line and the Night Package, which gives it a particularly sporty and expressive character. Recently, the new A-Class won AUTO BILD Design Award 2012 for Germany's most beautiful vehicle.

"Even before the launch, over 50,000 pre-orders for the new A-Class were handed in. Now we have started the compelling delivery of this model - and look forward to meeting many collectors," said Epple.

The new Mercedes-Benz A-Class

With the new A-Class, Mercedes-Benz sets new standards in the compact segment: very emotional design, dynamic thanks to the powerplants ranging from 80 kW (109 hp) to 155 kW (211 hp), high efficiency with emissions from 98 g CO2/km and the best in class drag coefficient of 0.27. The A-Class also underlines that safety at Mercedes-Benz is no question of price - including the radar-based assistance system COLLISION PREVENTION ASSIST as standard equipment. The prices for the A 180 BlueEFFICIENCY start at 23,978.50 euros (incl. 19% VAT) in Germany.

The Mercedes-Benz plant in Rastatt

The Mercedes-Benz Rastatt plant employs more than 6,100 people, and this year added 500 new permanent jobs. The new generation of Mercedes-Benz premium compact cars includes the A- and B-Class models, as well as three sporty, emotional models, including a coupe and an SUV. The five models of the new compact lineup will be assembled in the production network of the Rastatt plant and at the new plant in Kecskemét, Hungary, which was opened up at the end of March 2012. The A- and B-Class, together with the compact SUV, will be built at Rastatt.

Credits: Daimler AG

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Start of production at the Mercedes-Benz Rastatt plant - Offensive in the Compact Segment: First New A-Class Rolls Off the Production Line

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In the light of the motto "the pulse of a new generation", the first new Mercedes-Benz A-Class rolled off the production line today at the Mercedes-Benz Rastatt plant. The A-Class is the company's second new compact model, following the start of production of the new B-Class at Rastatt in September 2011 and at the new Mercedes-Benz plant in Kecskemét, Hungary at the end of March 2012.

"This start of production marks a further milestone in our Mercedes-Benz 2020 growth strategy. The A-Class represents our offensive in the compact segment", said Dr Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. "And there is more to come: The compact SUV will be the third model we will build here in Rastatt."

Dr Wolfgang Bernhard, Member of the Board of Management of Daimler AG responsible for Manufacturing & Procurement Mercedes-Benz Cars & Mercedes-Benz Vans: "We are on a roll in manufacturing as well: Hard on the heels of the new B-Class, we are now producing the totally new A-Class for our customers. Thanks to the joint architecture, we can flexibly produce all models of our new compacts on the same production line at the respective site."

Daimler is investing a total of around €1.2 billion in the Rastatt plant for the production of the new compact models. In a first wave of expansion, €600 million were used e.g. for the construction of a new bodyshell building and for tools, and a further €600 million will follow this and next year for a second wave of expansion. These new investments are slated for modifications of the assembly and corresponding equipment installations in the bodyshell production.

Another €400 million will be invested in the powertrain plants this and next year for production of components solely used in the new compact models. A total of 900 new permanent jobs have been created at Rastatt since 2010, 500 of them in 2012 alone. The plant is thus responding to the ongoing high demand, and continues to grow with the new generation of compact cars.

Since the start of sales in mid-June more than 40.000 customers have already ordered the new A-Class. More than 70.000 vehicles of the new B-Class were delivered to customers since its market launch in November 2011, "Demand for our premium compact cars is so strong that we are going to to introduce a third assembly shift in October 2012", said Peter Wesp, Head of the Mercedes-Benz Rastatt plant. "Our team in Rastatt is doing a fantastic job, and we are very proud of their achievements." The number of trainee positions has been increased to 70 per year.

About the new A-Class

The new Mercedes-Benz A-Class sets new standards in the compact segment: exceptionally emotive in its visual design, dynamic with engine power ratings ranging from 80 kW (109 hp) to 155 kW (211 hp), highly efficient with emissions from 98 g CO2/km and a best-in-class drag coefficient value of 0.27. The new A-Class underlines at the same time that safety is not a matter of price at Mercedes-Benz – among others, the radar-supported COLLISION PREVENTION ASSIST system comes as standard equipment. Prices in Germany start from €23,978.50 (incl. 19% VAT) for the A 180 BlueEFFICIENCY.

About the Mercedes-Benz plant in Rastatt

The Mercedes-Benz Rastatt plant was inaugurated in 1992. The first production model was the E-Class, made until 1996. Series production of the A-Class, which established the premium compact car segment, began in 1997. Unit sales of the A-Class reached 1.1 million until 2004, when the second generation was introduced.

The team at Rastatt has now made more than a million units of the successor generation. 2005 saw the arrival of another model, the B-Class, over 700,000 of which were supplied to customers all around the world over the following six years. The Rastatt plant is the company’s centre of competence for Mercedes-Benz compact cars.

In September 2011 the new B-Class went into production at Rastatt as the first of the new compact car models. The new generation of compact cars comprises the A-Class, the B-Class and a further three sporty and emotive vehicles, including a coupé and an SUV. These five new compact models are built in a production network of the Mercedes-Benz plants in Rastatt and Kecskemét, Hungary, which opened at the end of March 2012. The Rastatt plant will produce three of the five models: the new A-Class, the B-Class as well as the compact SUV.

Credits: Daimler AG

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First CLS Shooting Brake comes off the line at the Mercedes-Benz plant in Sindelfingen

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Premiere at the Mercedes-Benz plant in Sindelfingen: the first production model of the CLS Shooting Brake rolled off today. With the all-new vehicle that combines the emotional style of a coupé with an innovative concept of space and a comfortable atmosphere, Mercedes-Benz is further expanding its premium product range to a new level. The CLS Shooting Brake is assembled at the Sindelfingen plant, with the production running in conjunction with the CLS Coupé and the E-Class sedan on the same line.

"We are pleased to produce another dream car from Mercedes-Benz at the Sindelfingen plant: the CLS Shooting Brake. The production of this innovative vehicle concept strengthens our position and reinforces our role as a center for the upper class cars," said Dr. Willi Reiss, head of the Mercedes-Benz plant in Sindelfingen. "The perfect integration of the CLS Shooting Brake in our manufacturing processes reflects the flexibility of our production and pf our team of specialists."

The Mercedes-Benz CLS Shooting Brake

With the new CLS Shooting Brake, Mercedes-Benz is once again setting an example when it comes to creativity of design, and as such highlighting its leading role in this area: in terms of its proportions, the new CLS is quite clearly a coupé, but with five doors and a roof which continues through to the rear, it promises some remarkable new possibilities. The idea of the four-door coupé – successfully introduced in 2004 with the first CLS and long imitated in the meantime – has now been taken to new heights and to innovative effect. The result is automotive independence at its most beautiful.

Credits: Daimler AG

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Mercedes-Benz plant in Bremen: First new-generation GLK leaves the Customer Center

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The new-generation of the GLK has now left the Mercedes-Benz Customer Center in Bremen. Andreas Kellerman, manager of the Mercedes-Benz Bremen Plant, gave Stefan Klug from Frankfurt am Oder, the keys of the compact SUV. In addition to the standard equipment, the vehicle also features Active Parking Assist, including Parktronic and the Intelligent Light System. "We are proud of the new GLK," said Andreas Kellermann. "I am confident the new on- and offroad vehicle will be very well received by customers."

About the new GLK

With a new design, exclusive appointments, pioneering assistance systems and efficient and agile engines, the new generation of the GLK underscores its claim to leadership of the compact SUV market segment. The newly designed exterior lends this car full of character greater poise. The GLK 2012 comes up trumps with a range of state-of-the-art assistance systems and comprehensive BlueEFFICIENCY measures such as the standard-fit ECO start/stop function. BlueTEC diesel emission control is available for the compact SUV for the first time, enabling compliance with the EU6 emissions standard.

About the off-road vehicle trail

For those who want to test the ability of the new GLK in offroad terrain, "The Rock" course is available. Right next to the Mercedes-Benz Customer Center, clients can learn, under the guidance of an instructor, about the off-road qualities of the GLK on different surfaces.

Credits: Daimler AG

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Production milestone: Mercedes-Benz Sindelfingen plant produces the 750,000th C-Class Limousine

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On 26 June 2012, for the 750,000th time, a C-Class Limousine of the current W 204 series left the production line at the Mercedes-Benz plant in Sindelfingen. "Behind each of these 750,000 vehicles in Sindelfingen is the enthusiasm of the automaker," said plant manager Willi Reiss. "The number speak for itself - and shows how popular the C-Class sedan is." The milestone vehicle, a C 220 CDI BlueEFFICIENCY in Avantgarde trim in iridium silver metallic exterior paint finish, goes to a customer in Karlsruhe. As additional safety features, the vehicle includes ATTENTION ASSIST, Blind Spot Assist and Lane Keeping Assist.

The C-Class Limousine

Comfort, efficiency and reliability - these attributes are associated with the C-Class Limousine. With excellent handling characteristics and a distinctive design, the highest-volume series from Mercedes-Benz scores with a versatile product concept which meets the different customer expectations. For the full year 2011, the C-Class Limousine was once again the most successful model in its segment  with more than 270,000 units sold. According to the latest Vehicle Ownership Satisfaction Study of the market research firm JD Power and Associates, the owners of C-Class models are the most satisfied customers in the premium middle class - for the third year in a row. The current series of the C-Class Limousine has been assembled at Sindelfingen since March 2007 and since March last year in the facelifted generation. Other production facilities around the globe include the factories in Bremen, Beijing / China and East London / South Africa.

Credits: Daimler AG

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Production of the new-generation GLK commences at the Mercedes-Benz Plant in Bremen

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The first unit of the new-generation GLK rolled off the line at the Mercedes-Benz plant in Bremen on the 1st of June. The compact SUV was launched in April at the New York International Auto Show. The GLK comes with a redesigned exterior and several new equipments. "Our compact SUV is a hit: siince its launch in 2008, we have sold over 270,000 units," said Andreas Keller, Head of the Mercedes-Benz plant in Bremen. "We have perfectly integrated the new GLK in our production scheme. It is being built - like its predecessor - on the same production line as the sedan, the estate and the coupe variants of the C-Class lineup."

With a new design, upscale trim level, trailblazing assistance systems and efficient engines, the new-generation GLK highlights its leadership within the market segment of compact SUVs. The redesigned exterior delivers a more dynamic character. It combines both classic and modern elements found in the design of the current Mercedes-Benz sedans. The GLK comes packed with a range of modern assistance systems and extensive BlueEFFICIENCY measures like the standard ECO start-stop. For the first time in a GLK, the BlueTEC diesel emission control meets the stringent EU6 emission standard. From 29 June 2012, the new GLK is available for customers.

With more than 12,800 employees, the Bremen plant is the largest private employer in the region. Eight models are currently produced at this site: the C-Class sedan, the C-Class station wagon and the C-Coupe with the Black Series version of the C 63 AMG Coupe, the E-Class Coupe and Cabriolet, the GLK and both SLK and SL roadsters. More than ever before, the plant has produced over 313 000 vehicles in 2011. Last year, the market research firm J.D. Power and Associates has awarded the facility an official prize for its production quality and declared it the best passenger car production plant in Europe. In the future, the site will play an important role in the Mercedes-Benz development network: the next generation C-Class is the work of this center of excellence for high-volume series.

Credits: Daimler AG

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Mercedes-Benz plant in Rastatt: Farewell to the last A-Class of the second generation

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Since the production started back in 2004, more than one million vehicles of the current A-Class model generation (W 169/BR 169) have come out the assembly line at the Mercedes-Benz plant in Rastatt. The final car of this series, an A 180 CDI in polar silver, has recently left the factory. The vehicle will arrive at a customer in France. "We are very proud of the success story of the A-Class we will continue to write with the next series. Preparations for the start of the new A-Class are already in full swing.", said Peter Wesp, head of the Mercedes-Benz plant in Rastatt.

The new A-Class

In March this year the new A-class celebrated the world premiere at the Geneva Motor Show. Up to 18 inches lower than the previous model, the new generation displays a sporty, confident character. As the world's first automobile manufacturer, Mercedes-Benz has completely integrated digital and phone communication and functionality in the telematics concept of the W 176 generation. The new petrol and diesel engines are now more fuel efficient and meet any power requirements. They can be combined with the new six-speed manual gearbox or with the optional automatic transmission with double clutch transmission 7G-DCT. The new A-Class is the first car in its segment to feature a standard radar-based collision warning system with ADAPTIVE BRAKE ASSIST, which decreases the chances of a collision. The first units will be delivered to clients beginning with September 2012.

About the Mercedes-Benz plant in Rastatt

The Rastatt plant was officially inaugurated in 1992, with the E-Class being the first model to be assembled there until 1996. From 1997 onwards, the facility was established as a production site for the new A-Class. Prior to 2004, when the second generation came into force, around 1.1 million compact Mercedes-Benz premium models were sold to clients all over the world. Moreover, the current A-Class series appealed to more than one million customers and, in addition, beginning with 2005, the B-Class was also introduced in the production portfolio of the Rastatt factory. This niche vehicle, marketed as a compact sports tourer, became instantly popular, with total sales exceeding 700,000 units. Therefore, the Rastatt plant is unanimously recognized as a competence center for the construction of compact cars from Mercedes-Benz.

Starting September 2011, the new B-Class (W 246) was introduced in the range. Currently, preparations are being made at Rastatt to welcome the new A-Class, which is celebrating the world premiere at the Geneva Motor Show in March 2012. The new generation of Mercedes-Benz premium compact cars further includes three more sporty, emotional models, including a coupe and an SUV. The five new models will be built in a comprehensive production network comprising the Rastatt plant and the new facility in Kecskemét, Hungary. Three of the five models will be assembled at Rastatt.

Credits: Daimler AG

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Production milestone at the Mercedes-Benz plant in Sindelfingen: 500,000th E-Class sedan leaves the factory line

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Less than three years after the start of production, the Mercedes-Benz plant in Sindelfingen achieves a high score: half a million E-Class sedans from the W 212 series rolled off the assembly line up to this moment. The anniversary vehicle is an E 350 4MATIC in Calcit White exterior paint finish and boasting an extensive equipment, which is bound to reach a customer from the USA. In addition to the standard safety package, the limousine also features the Active Lane Keeping Assist and Active Blind Spot Assist systems on board.

"The E-Class is the epitome of a luxury sedan: modern, fascinating and safe. These facts are continuously confirmed by our clients and the high acceptance in the market. I am particularly pleased that our anniversary vehicle goes to a satisfied customer from the United States, "said Dr. Willi Reiss, head of the Mercedes-Benz plant in Sindelfingen.


Since the launch in May 2009, the E-Class of the W 212 series appealed to public in terms of comfort, safety and design. An impressive collection of major national and international awards confirm the high popularity of this model. For example, the E-Class was voted as favourite car in Germany and thus received the ADAC Yellow Angel Award,  as well as the German Design Award for the styling philosophy it displays.


The E-Class has a long tradition in the portfolio of Mercedes-Benz. Since the first E-Class came out of the factory some sixty years ago, no less than eight different generations have been premiered during this period and more than ten million units have been sold to clients all around the world. This unique performance makes the E-Class the most successful business limousine of all time.


The Mercedes-Benz plant in Sindelfingen is world's largest manufacturing plant of Daimler AG. In the global production network of Mercedes-Benz Cars, the Sindelfingen plant has a special role as center of excellence for luxury-class passenger cars.

Credits: Daimler AG

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Offensive in the Compact Segment Continues: Start of new Mercedes-Benz Plant in Hungary

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Daimler started production at its new passenger car plant in Kecskemét today. Passenger cars are now rolling off the assembly line in Hungary less than four years after the location decision was made in summer 2008. Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, Plant Manager Frank Klein and Hungarian Prime Minister Viktor Orbán welcomed around 600 Hungarian and German guests at the opening ceremony.

At the press conference, Dr. Dieter Zetsche stressed the importance of the new location: “With the start of production in Kecskemét, the Mercedes-Benz offensive in the premium compact segment is shifting up a gear. With the production network of the Rastatt and Kecskemét plants, we now have the capacity to meet the demand from many existing – and new – customers in the premium compact segment.”

In this respect, Zetsche announced that another model series would also be coming to the new location – the 4-door coupé of the new generation of Mercedes-Benz compact cars. As part of the ongoing plant development, headcount is to be increased from around 2,500 to more than 3,000 by the end of this year.

Zetsche expressed his special thanks to Daimler’s Hungarian partners in the political, administrative and social areas: “They welcomed us like a friend and actively supported us through every stage of the plant development. Their tireless commitment was one of the main reasons for the positive outcome of this project, and will continue to be a key factor in the success of the Mercedes-Benz Kecskemét plant.”

Zetsche also praised the outstanding work of the Hungarian, German and international employees in developing the new plant: “This team has provided the perfect example of how we will expand our passenger car production capacity in the years ahead. We are thus laying the foundations for implementing our Mercedes-Benz 2020 growth strategy.”

Frank Klein, Managing Director of Mercedes-Benz Manufacturing Hungary Kft., said: “We are making history today: less than four years after the location decision was made, ‘Mercedes-Benz Made in Hungary’ has become a reality. From now on, we can show that we are a key pillar of the Mercedes-Benz production network. Our intensive preparations have enabled us to produce the established Mercedes-Benz quality right from the very first vehicle.”

The first vehicle from the plant is to be auctioned off. The proceeds will be donated to the Hungarian aid organization Nemzetközi Gyermekment ő Szolgálat (International Children’s Safety Service).

Additional capacity for B-Class production

The first product in the new generation of Mercedes-Benz compact cars, the B-Class is now built at the new plant. It went into production at the plant in Rastatt, Germany back in September 2011. With this increased production capacity, it is now possible to fully address the overwhelming customer response: Mercedes-Benz has already received more than 100,000 orders for the B-Class since its launch in November 2011.

Efficient production in the Rastatt-Kecskemét network

In total, Daimler has invested €1.4 billion in production of the new generation of Mercedes-Benz cars: €800 million for construction of the Kecskemét plant and €600 million for expansion of the Rastatt plant.

The joint production of the B-Class in Rastatt and in Kecskemét enables flexible and optimum management of both plants’ capacity utilization. This volume flexibility is a key factor of the economic efficiency of the production network. In addition, the joint architecture of the new generation of compact cars ensures complete type flexibility in production: in principle, all models at the location can be produced on the same assembly line, in all variants of the product range and in any sequence.

The production network also includes the efficient logistical link between the two plants, which are part of the Daimler Rail Net network. The recently opened east-west rail link supplements the existing north-south links between the powertrain and vehicle plants in Germany. In particular, body parts, engines, transmission systems and other components are delivered from the German locations to Kecskemét by rail. From 2013, most of the completed vehicles will also be transported by rail in the opposite direction. Overall, when completed, this will save up to 60,000 tons of CO2 per year.

Perfect planning and green production from the outset

The plant in Kecskemét was the first passenger car production plant in the Group to be entirely digitally planned and to receive three-dimensional backup. This was an essential requirement for the perfectly-timed workflows and adherence to all deadlines and cost targets.

State-of-the-art, environmentally sound technology is used at the plant. For instance, the paint shop is one of the most modern and resource-friendly facilities of its kind with its innovative dry separation method. The overall energy concept is particularly geared towards efficiency, e.g. the ventilation system of the production shops with heat recovery, the use of highly efficient strip-lighting systems for illumination and the use of two district heating plants to supply electricity and heat.

The most attractive employer in the region

The plant is the most attractive employer in the region, especially since employee training is a top priority. All new employees undergo intensive training programs, which are available at the in-house training center in Kecskemét and at the German locations, particularly at the Rastatt plant. This thorough, high-grade training is the key success factor in producing top-quality vehicles to Mercedes-Benz standards at the location from the outset.

Innovative dual training in Hungary, strategic partnerships in the area of education

The Mercedes-Benz Kecskemét plant is also covering future requirements for qualified staff through strategic partnerships in the area of education. In particular, the plant is breaking new ground by offering high-grade dual vocational training based on the German model, which is being delivered in conjunction with Kecskemét City Council and the Chamber of Industry and Commerce of the county of Bács-Kiskun. The first 34 trainees started their courses in 2011, and the next intake of 36 trainees will start their training in September 2012.

In the tertiary education sector, the Mercedes-Benz plant and Kecskemét University of Applied Sciences have joined forces to enable practically-oriented, dual university education. The first students in this new training format will commence their studies in September 2012. With this offering, the partners are aiming to make the University for Applied Sciences the number one centre in Hungary for training of extremely well-qualified specialists for the automobile industry.

Hungarian companies benefit from the project

The Hungarian economy has benefited significantly from the choice of location. For instance, over 90% of the order volume for construction of the plant was placed with Hungarian companies. Operation of the plant also provides wide-ranging opportunities for Hungarian partners, for example service providers and craftsmen. Regarding the production materials for the new generation of Mercedes-Benz compact cars, 17 Hungary-based suppliers have been awarded a substantial order volume worth running into nine figures of euros.

Credits: Daimler AG

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Mercedes-Benz consistently implements its 2020 growth strategy

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Daimler AG sees Mercedes-Benz well on its way to achieving the goals of its 2020 growth strategy and reclaiming the number one position in the premium segment by the end of the decade.

Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, stated to investors and analysts at the opening of the new plant in Kecskemét, Hungary: “Mercedes-Benz is consistently implementing its growth strategy. We have a fighting spirit in the entire organization to become the leading manufacturer of premium automobiles once again also in terms of unit sales. We are aware of the challenges and we will master them.”

Following the successful year 2011, in which the division posted new records for unit sales, revenue and earnings, the year 2012 has also started well. Mercedes-Benz Cars is expected to report the best unit sales it has ever achieved in a first quarter.

With its Mercedes-Benz 2020 growth strategy, the Mercedes-Benz Cars division intends to occupy the number one position in the premium segment not only in terms of brand, products and profitability, but also of unit sales. Zetsche left no doubt that all efforts are being made to achieve those four goals, with the support of a large number of activities. 

With regards to the Mercedes-Benz brand, Daimler is further strengthening its core brand values of fascination, perfection and responsibility to broaden the customer base and address younger customers. This will be facilitated by the five new models of the new-generation compact car, and also by highly emotive vehicles such as the CLS Shooting Brake.

With products, the automobile portfolio is being rejuvenated and a third product offensive has been started with 10 new derivatives for which no predecessor models exist to be launched by the year 2015. For example, the luxury segment will be enlarged by expanding the S-Class range from three to six models with highly profitable derivatives.

The planned activities also include further reductions in fuel consumption and CO2 emissions. “We are convinced that ‘cool’ and ‘green’ can peacefully coexist in our garages,” said Zetsche. Mercedes-Benz Cars will be able to reduce the average CO2 emissions of its automobiles sold in the European Union from today’s 150 grams per kilometer to 125 g/km by the year 2016. The new A-Class will start with emissions of 99 g/km.

In order to further increase unit sales, the automobile portfolio will be successively expanded and geographical presence will be broadened by expanding sales structures and production capacities, especially in the NAFTA region and in China.

There will be a positive impact on the progress to the top of the premium segment from the fact that the automotive industry continues to be a growth industry. According to forecasts, worldwide car sales will increase from 60 million units in 2011 to 100 million units in 2020. China is already the world’s biggest market in terms of unit sales and will remain so in 2020, but the country’s car market will have doubled by then. China therefore remains a cornerstone of Mercedes-Benz Cars’ growth strategy. The second-most important sales market, the United States, is projected to have an annual average growth rate in the premium segment of 5.6%. And India will advance to become the world’s third-largest car market by 2020.

Irrespective of this development, a clear target has been set of “achieving above-average growth in those markets and of further improving our competitive position,” stated Zetsche. In this context, he affirmed the medium-term target for unit sales of Mercedes-Benz: sales of more than 1.5 million vehicles in 2014 and more than 1.6 million in 2015 (2011: 1,279,100). Zetsche pointed out that the emphasis was on the word “more.”

Mercedes-Benz Cars will further improve its profitability by means of project-related cooperation such as with Renault/Nissan, as well as through savings achieved from the module and platform strategies and improved efficiency in the value chain. At the same time, the enhanced flexibility of the international production network will make it possible to react faster to fluctuations in demand.

Due to savings from the module strategy and further efficiency actions, the division will be able to compensate for the cost burden anticipated in the automotive industry from rising raw-material prices and investments to reduce CO2 emissions, thus safeguarding its profitability targets. “At Mercedes-Benz Cars, we are approaching our targeted return on sales of 10 percent, which we want to achieve on a sustained basis as of 2013 – on the assumption that our business environment will remain stable,” emphasized Zetsche.

How the Mercedes-Benz 2020 growth strategy works in practice can first be seen in the compact-car segment. The new plant in Kecskemét is a state-of-the-art factory for Mercedes-Benz Cars; it will produce cars in conjunction with the plant in Rastatt and will make a key contribution to economy through volume flexibility.

Profitability in the compact-car segment will be additionally improved compared with the predecessor generation by producing a significantly higher volume of five different cars from the same architecture instead of two, and by spreading the production network over three plants (Rastatt, Kecskemét and Beijing).

On the occasion of the opening of the new plant for the production of the new B-Class, Daimler had invited investors and analysts to attend a division day in Kecskemét in Hungary.
Credits: Daimler AG

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