Daimler to expand JV site in Romania to build transmission parts

Article by Anita Panait, on April 23, 2013

Daimler will invest a large amount to produce transmission parts in Romania, particularly at the Cugir plant of its existing joint venture in the country, according to a report from Handelsblatt. Citing sources privy to the carmaker, the daily said that Daimler's supervisory board will lay the groundwork for the investment on Wednesday.

Daimler is expanding its joint venture with the Romanian government since its transmissions production site in Untertuerkheim, Stuttgart, is nearing full capacity, Handelsblatt reported. In March, Romanian Prime Minister Victor Ponta disclosed that Romania had inked a memorandum of understanding with ''one of the biggest and most prestigious companies in Germany'' to open a production site in the country.

French carmaker Renault’s Dacia unit and American automaker Ford Motor Co. have car production sites in Romania. Carmakers from Western Europe are attracted to invest in Romania as the country’s low cost and skilled labor force enable them to incur lower manufacturing costs.

In 2008, Daimler was holding discussions with Romania to construct a Mercedes-Benz car plant in the country, but decided to invest EUR800 million in a site in Kecskemet, Hungary, where it currently produces the B class and CLA compact cars. Romanian media reported in 2012 that BMW was in talks with the city of Lugoj in Romania about building a production site.

Meanwhile, Daimler is launching three new compact models by 2015 alongside its A- and B-class cars as part of its bid to regain the crown as the best-selling luxury carmaker by the end of the decade. Daimler also unveiled on April 20, 2013 the Mercedes GLA compact crossover concept at the Shanghai auto show.

If you liked the article, share on:

Comments

Recommended

Without a doubt, the SUV segment is getting increasingly more saturated. This month alone, we were greeted with city-oriented SUVs from the Kia Stonic to the Hyundai Kona, and now...
by - June 27, 2017
The Swedish moose test is known to have victimized many in the past, including the Toyota Hilux that massively failed. So knowing that many cars from trusted and leading automakers...
by - June 27, 2017
All-new BMW X3 (G01) just made its debut! The updated model has a familiar design, and slightly increased dimensions compared to its successful predecessors. For more cabin space, the wheelbase...
by - June 27, 2017
Polestar is notably known to be Volvo's internal performance specialists, and around last year Polestar revealed to the public that it will utilize electrification to further advance the power of...
by - June 26, 2017
Earlier this month, Porsche introduced to us the 911 Turbo S Exclusive Series. The car wore a Golden Yellow Metallic paint. The same time it was launched, the company said...
by - June 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries