Daimler to invest EUR170mil to build new Mercedes-Benz plant in Brazil

Article by Anita Panait, on October 3, 2013

Brazilian president Dilma Rousseff has jointly signed with Andreas Renschler, Management Board member for Production and Procurement at Mercedes-Benz Cars and Mercedes-Benz Vans, and Philipp Schiemer, chief executive Mercedes-Benz do Brasil & Daimler Latin America, a framework contract that paves way for Daimler to materialize its expansion in the country.

Daimler is investing an initial EUR170 million to build a new assembling plant Iracemápolis near São Paulo, which will produce next-generation C-Class and the GLA for the local market. The first vehicles will roll off the assembly line as early as 2016. Renschler remarked that they consider Brazil as “an important future market.” He said that the new facility “stands exemplarily for the expansion” of their global production network,” allowing them to approach customers even more.

Renschler remarked that they will be localizing the next generation of the C-Class and the GLA as they see “great potential” in the Brazilian premium segment.”

On the other hand, Schiemer said that with local production of cars, Mercedes-Benz is the only company to have offerings in all segments of mobility in Brazil. He said that the proximity of their production footprint in São Paulo and Minas Gerais will enable the carmaker to have a “greater integration” among plants and exchange possibilities for workers. ”

The assembly plant – which is expected to produce up to 20,000 vehicles annually – will create around 1,000 new jobs for the carmaker and around 3,000 new jobs for suppliers.  Mercedes-Benz do Brasil is expected to soon complete the acquisition of land for the future plant premises in Iracemápolis near São Paulo.

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