Mercedes Benz to invest €1 billion to develop new small cars

Mercedes Benz to invest €1 billion (Rs 7,062 cr) to develop next gen small cars

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From 2015-2020 Daimler will be investing around €1 billion (INR 7,062 crores) into the transformation of Mercedes Benz Rastatt plant in Germany. It is from this plant that the company will be developing future technology while production expansion and new generation compact cars will be produced.

Mercedes Rastatt Plant
Mercedes-Benz Rastatt plant, Germany: Stefan Abraham, Site Manager Mercedes-Benz Rastatt plant (right) and Ullrich Zinnert, Chairman of the Mercedes-Benz Works Council Rastatt plant with a Mercedes-Benz GLA 200 CDI

As on date, Mercedes-Benz Rastatt plant has a high level of capacity utilization and a workforce of 6,500 employees. It reached production record of 292,784 units in 2014 which contributed significantly to the success of the company’s compact car segment. Sales during the year stood at 463,152 units, an increase of 24.7% as against sales in the previous year. During the first five months of 2015, the company has set a new sales record and already seen deliveries of 215,148 units.

The added funding to Mercedes-Benz Rastatt plant will go towards next generation models while the company wishes to hire 250 new permanent employees. A Transformation Plan is also being planned. The company and Works Council have come to a decision to initiate some measures to bring in improvements that will enhance plant’s competitive position while also ensuring stable employment over next few years.

Mercedes Rastatt Plant
Mercedes-Benz Rastatt plant, Germany: Stefan Abraham, Site Manager Mercedes-Benz Rastatt plant (left) and Ullrich Zinnert, Chairman of the Mercedes-Benz Works Council Rastatt plant, during a media talk at the customer service center Rastatt.

The agreement also includes flexible working time arrangements and cost savings to the tune of triple digit million Euro range. The company’s Rastatt plant will also offer vocational training programs, offering trainees a chance at permanent employment at the end of the program.

Mercedes-Rastatt-Plant
Mercedes-Benz Rastatt Plant, Germany: Body shop.

As on date 70 apprentices are being trained at the plant. Rastatt plant is the largest employer in the region and is lead plant for production of A Class, B Class, B Class Electric Drive and also of compact SUV GLA.

Production of new B Class Electric Drive from Rastatt Plant – Video

Mercedes Benz new investment for Rastatt Plant – News Release

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