Mercedes-Benz Invests €3 Billion on Capacity Increases and German Plant Upgrades

- Leadership - Sep 16, 2014

German carmaker Mercedes-Benz is to invest €3 billion across its manufacturing activities in its home country in order to boost capacity and efficiency.

Internationally, this year alone the company is managing 18 vehicle ramp-ups at eight locations worldwide, among them the start of production of the new C-Class sedan on four continents. Until 2020, Mercedes-Benz will additionally introduce 12 models which do not have a predecessor.

Markus Schäfer, Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain Management, said: “We want to continue to grow and will significantly increase our production capacities in the coming years. At the same time we want to permanently and sustainably strengthen our competitiveness with a high-performance organisation.”

In Germany at the Sindelfingen plant, more than €1 billion are invested primarily for future products. Another billion euros go to the Untertürkheim core plant, amongst others for the expansion of engine production. The Bremen plant's capacities will be increased with around €750 million.

“Under our previous production structure, the individual plants operated largely autonomously. Now, manufacturing will be organized according to product architectures, independent of individual locations,” explained Schäfer.

Another key factor in the new organisation is centralised supply chain management, in which all stages of the supply chain must be seamlessly integrated, from the supplier right through to the end customer.

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