Daimler announces new car plant in Brazil

Updated: October 07, 2013, 07:18 PM IST
Daimler has announced plans to build a new plant in Brazil and has alloted 170 million euros for the first stage of expansion. Once operational, the factory in Iracemápolis near São Paulo will manufacture the next-generation C-Class and the GLA for the Brazil market. Brazilian president Dilma Rousseff jointly signed the framework contract with Andreas Renschler, Management Board member for Production and Procurement at Mercedes-Benz Cars and Mercedes-Benz Vans, and Philipp Schiemer, CEO Mercedes-Benz do Brasil and Daimler Latin America. According to the existing plans, the initial lot of vehicles are expected to roll off the line by 2016.

Signing of framework contract: Philipp Schiemer, CEO Mercedes-Benz do Brasil & Daimler Latin America, Andreas Renschler, Management Board member for Production and Procurement at Mercedes-Benz Cars and Mercedes-Benz Vans, Brazilian president Dilma Rousseff and Fernando Pimentel, Brazilian minister of Development, Industry and External Market (left to right)(From left)  CEO Mercedes-Benz do Brasil and Daimler Latin America Philipp Schiemer, senior Mercedes-Benz Management Board member Vans Andreas Renschler, Brazilian president Dilma Rousseff and Brazilian minister of Development, Industry and External Market Fernando Pimentel

"Brazil is an important future market. With our local production we accept the challenge and take on the competition. The new facility stands exemplarily for the expansion of our global production network – we thereby approach our customers even more.With the next generation of the C-Class and the GLA, we will be localizing two highly attractive products with top Mercedes quality, for which we see great potential in the Brazilian premium segment," said Andreas Renschler, Management Board member for Production and Procurement at Mercedes-Benz Cars and Mercedes-Benz Vans.

"With the local production of cars, Mercedes-Benz stands out as the only company to act in all segments of mobility in Brazil, with cars, trucks, buses and vans. The proximity of our production footprint in São Paulo and Minas Gerais will also allow us to have a greater integration among plants and exchange possibilities for the employees," said Philipp Schiemer, CEO Mercedes-Benz do Brasil.

The plant will have a capacity to assemble around 20,000 vehicles per annum. It will also create 1,000 new jobs at the plant. It is also expected to create an additional 3,000 new jobs for suppliers. Daimler's company Mercedes-Benz do Brasil will soon complete the land purchase formalities of the future plant premises in Iracemápolis near São Paulo, allowing for the start of the building preparations.