Daimler to spend $2 billion to upgrade Sindelfingen site

Article by Christian A., on August 3, 2014

Daimler is planning to invest EUR1.5 billion ($2 billion) through 2020 to upgrade its Sindelfingen site in Germany, after it workers green-lighted more flexible working terms. The site – which builds Mercedes-Benz’s S-class sedan, the CLS coupe and its wagon-like shooting brake variant, as well as the current E class – is expected to get at least EUR100 million in savings thanks to the labor agreement, which allows the carmaker to have more flexibility to assign production shifts, especially when ramping up and phasing out a model, Daimler said in a statement.

Chief executive Dieter Zetsche said in the statement that the deal combines investments for the future with the necessary savings, adding that it allows the carmaker to strengthen Sindelfingen's position and secure jobs.

The investment will result to a new body shop, paint shop and logistics center at the Sindelfingen site. It would also result to another assembly hall for the next version of the E-class sedan.

The site, currently employing 22,000 people, will offer permanent contracts to around 100 temporary workers, Daimler said.

The modernization of the Sindelfingen site is part of Zetsche's strategy to hike operating profit at Mercedes to 10 percent of revenue in order outgrow those of BMW and Audi by the end of the decade. Likewise, Zetsche is aiming to have Mercedes become the biggest-selling luxury car brand by 2020. [source: Bloomberg]

Topics: daimler, investment

If you liked the article, share on:

Pin It

Comments

Recommended

Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Since 1993, Lexus has produced 4 generations of the Lexus GS, with the GS F amongst its newest member of the family. Unfortunately, rumors are also heating up that the...
by - March 24, 2017
In a leaked image following a presentation held in China, we learned that Czech automobile manufacturer Skoda will soon unveil 2 more new SUVs in China, resulting in a four-model...
by - March 24, 2017
McLaren is said to be designing the next generation of Sports Series, which could include a V6 hybrid among its powertrain options. It was earlier reported that the British automaker...
by - March 24, 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