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.

Both the Mercedes-Benz four-door CLS Coupe and the CLS Shooting Brake received extensive tweaks, including a honed front section as well as well as an upgraded interior with several new handcrafted details that fuses passionate sportiness and modern luxury.

Furthermore, the new CLS Coupe and the CLS Shooting Brake are provided with an array of breakthrough technical innovations like the Multibeam LED headlamps that makes use of precise high-performance LED modules that could automatically deliver the best possible illumination in any road or traffic condition.

Both CLS models are fitted with new dynamic engines, the 9G-Tronic nine-speed automatic gearbox as well as intelligent driver assistance and safety systems. They are also provided with a progressive multimedia system with Internet. Both models also come with new Mercedes connect me online services. The AMG variants of these CLS models – the new CLS 63 AMG Coupe and Shooting Brake – offer up to 430 kW (585 hp) of power output stakes.

Mercedes-Benz CLS actually gave birth to the four-door coupe segment 10 years ago, as the model combined the elegance and dynamism of a coupe and the functionality and comfort of a saloon. The CLS was the first vehicle to offer optional LED High Performance headlamps. Mercedes launched the CLS Shooting Brake sporty five-door model in 2012, building on the success of the CLS.

The CLS Shooting Brake is basically derived from the CLS, boasting of the form of a sports car but featuring five seats and a large tailgate. Mercedes expects the CLS Shooting Brake to be extra appealing to active people who wanted to defy the control and who are unwilling to compromise either sportiness or luggage space.

In its concept alone, the Shooting Brake represents a new innovation among Mercedes luxury offers. Since their launch, both the CLS Coupe and the CLS Shooting Brake have proven to be stylish icons that offer a certain appeal while being distinct in their segment.

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Topics: daimler, investment

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