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.

Dynamic in design, peaceful in everyday motoring and with an off-road capacity – these are all attributes of the Mercedes-Benz GLA, which strikingly redefines the compact SUV segment. It easily masters all the daily difficulties and is additionally powerful enough for off-road travels.

The first Mercedes-Benz in the fast-growing compact SUV segment is easy to maneuver around town (length x width x height 4417 x 1804 x 1494 millimeters), dynamic on country and pass roads and dynamic and effective on the motorway (Cd figure 0.29). The high-quality installations, created with much passion for detail, and the adjustable interior indubitably position the GLA as a compact premium SUV.

The GLA is the first Mercedes-Benz SUV to be optionally available with the new-generation perennial all-wheel drive system 4MATIC, with totally variable torque distribution.

GLA climaxes the broad SUV portfolio of Mercedes-Benz. With five model series (GLA, GLK, ML, GL and G) the organization provides the broadest range of any European premium producer, and fulfills all the individual mobility wishes of its clients. Also, the GLA-Class is the fourth of a sum of five new compact models from Mercedes-Benz.

The sales figures abundantly show how well the new compact models are welcomed by clients: In the first half of 2013, for instance, 173,362 units of the A and B-Class and the new CLA Coupé were transported around the world (+58.0%). Particularly gratifying is the high success rate of the new A-Class with around 50 percent of the buyers in Europe being customers of different brands.

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