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:

Comments

Recommended

McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
While Honda’s new 2018 HR-V will be rolling out at the dealerships with just a few updates, the company is certainly not giving up its spot as the best-selling vehicle...
by - August 18, 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