Daimler examining whether to build Mercedes-Benz cars in Russia

Article by Christian A., on April 1, 2014

Earlier today we’ve told you that Daimler and BAIC are investing 1 billion euros in order to more than double Mercedes-Benz production in China. Still, it seems that this isn’t enough for Daimler to overtake its German rivals such as BMW and Audi, in order to become the world’s top-selling luxury automaker.

Apparently, the German company is now considering to expand its global production in Russia. "We have been looking at the basic parameters and potential of local production of passenger cars in Russia and have held various discussions," Daimler said today in a statement. The bad news is that Daimler didn’t offer too many details or disclose which companies it is talking to.

Daimler has very ambitious plans and wants to expand production to meet 2020 growth targets and build more vehicles near the markets they are sold. CEO Dieter Zetsche disclosed the fact that he wants the to regain the top spot in global luxury sales. For those who don’t know, Mercedes-Benz lost this position back in 2005, when BMW became the king, while in 2011 also lost the second place to Audi.

Despite a slowdown, Russia remains an attractive market for Mercedes-Benz as 2.78 million cars were sold last year. In 2013, Mercedes-Benz sold 44,376 cars in Russia, while BMW managed to sell 42,071. Audi sold only 36,150 vehicles in 2013. Still, Daimler’s expansions plans come when the United States and European Union imposed sanctions on Russian individuals over the country’s annexation of Crimea.

Last week we announced you Russia’s decision to stop buying imported vehicles. Currently, Daimler has a heavy trucks joint venture in Russia with OAO KamAZ, which uses Mercedes-Benz cabs, while engines and axles are supplied to KamAZ. Daimler holds a 15 percent stake in KamAZ. Moreover, an older version of the Sprinter van is built in Russia. [source: Bloomberg]

If you liked the article, share on:

Comments

Recommended

Here are some things that potential buyers of the Ford F-150 and Ford Expedition could look forward to for the 2018 model year. The 2018 models of the F-150 pickup...
by - August 15, 2017
We first saw the McLaren 720S earlier this year when it made its debut at the Geneva Motor Show, and we all agree that it is a beautiful car. But...
by - August 15, 2017
It has been six years since Lexus introduced the current generation of the CT 200h hybrid. For the 2018 model year, the current CT 200h lives through with some minor...
by - August 15, 2017
What happens when an auto company finds that a certain offering is not selling enough to make a good business case? Continuing to build and sell such vehicle would only...
by - August 14, 2017
It looks like that Audi is in the final stages of finalizing its new Audi Q8 sports utility vehicle. While the German premium carmaker has yet to reveal the looks...
by - August 14, 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