Daimler to invest EUR1 billion to modernize Untertuerkheim facility

Article by Andrew Christian, on March 26, 2015

Daimler is planning to spend billions of euros in the next few years to upgrade its factory at its headquarters in Untertuerkheim, near Stuttgart. For this year alone, Daimler will invest EUR1 billion ($1.06 billion) to modernize the site that builds engines, transmissions and axles for Mercedes-Benz cars.

The German carmaker that it has agreed steps with top labor representatives to keep the site’s workforce stable at around 18,700 people. The steps are also expected to yield cost savings "in the range of hundreds of millions of euros” until the end of the decade.

Markus Schaefer, head of production at Mercedes-Benz Cars, remarked that they are not only improving their flexibility and efficiency, but also developing a site into a high-tech location for carbon dioxide technologies.

According to Daimler the Untertuerkheim site will become a center for fuel-efficient engines and hybrid powertrains, as well as production of fuel cell systems. Untertuerkheim will also become responsible for a facility in Nabern where the carmaker will assemble fuel cell systems.

The Nabern facility will still be center for the overall development of fuel cell drive systems. With the incoming improvements, the Untertuerkheim site will soon produce two new gasoline engines and a new four-cylinder diesel engine and will focus exclusively on the output of automatic transmissions for rear-wheel-drive vehicles.

Daimler’s foundry in Esslingen-Mettingen and its forge in Untertuerkheim will remain integral parts of the facility. The carmaker is targeting to hike its output through the end of the decade as part of its bid to edge out rivals BMW and Audi.

Topics: daimler, investment

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