Daimler will invest $302 million in South Africa

Article by Christian A., on October 18, 2013

Even with the ongoing labor conflict in South Africa, Daimler will proceed with investing a 3 billion rand ($302 million) in the country to increase the output of the Mercedes-Benz C-Class. At the start of September, the workers of Mercedes, BMW and Ford Motor Co. went back to work to finish three weeks of industrial action over pay.

Because of the strike, automakers lost about 20 billion rand ($2 billion). Mercedes aims to present new technology and a third shift at its East London plant to increase capacity to 100,000 units annually, according to Martin Zimmermann, Daimler’s South Africa CEO. Presently, the plant produces around 60,000 units a year of the C-class sedan for the local and U.S. markets, along with several commercial vehicles.

Mercedes' commitment to South Africa arrives less than two weeks after BMW said it will put expansion in South Africa on hold after the strikes that closed plants in August and September cost it 13,000 cars in lost production.

On Oct. 7, the country's Finance Minister Pravin Gordhan said that the fact that BMW revised its plans is a "worrying sign.” Zimmermann said that it will take six to seven weeks for Mercedes to recover the lost production from the strike. He added that the company has a “significant order book." He said that the Africa's biggest economy has a “very positive” outlook for growth.

If you liked the article, share on:

Comments

Recommended

This one takes the cake for the ultimate customer service. A centenarian treats himself for hitting the 100 year mark by purchasing a £100k Lexus. Upon hearing of the purchase,...
by - April 26, 2017
Is there anything more exciting than a spoiler? Well, for those who didn't know, there are those who have already seen the Mercedes-AMG Project One (in the flesh) way before...
by - April 25, 2017
Does the Honda Passport ring a bell to you? This was the first ever SUV that was sold by the Japanese automaker, but it was not that successful compared with...
by - April 25, 2017
Wagon buyers who prefer their vehicle to be luxurious, you will have an entirely brand new selection at the latter part of this year. Porsche will start rolling out 4...
by - April 25, 2017
McLaren rejects the idea of creating anything other than a sports car. That means that vehicles that would be ideal for families such as an SUV or a crossover are...
by - April 25, 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