Daimler to invest a billion euros in Rastatt plant to produce next-gen Mercedes compact cars

The Mercedes-Benz Rastatt plant in Germany will also produce the next generation of Mercedes-Benz compact cars. Between now and 2020, Daimler will invest around one billion euros (Rs 7,644 crore) in the further technological development and expansion of production at the location.

"With our transformation plan for the Mercedes-Benz Rastatt plant we have laid the foundation for the successful production of the next generation of our compact cars. We will achieve significant gains in flexibility and efficiency. At the same time, we will strengthen the role of the location as the lead plant for compact cars within our global production network", said Markus Schäfer, Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain Management.

Capacity utilization at the Mercedes-Benz Rastatt plant, which has a workforce of around 6,500 employees, is running at a high level. In 2014, the plant posted a new production record of 292,784 vehicles and thus contributed significantly to the growth seen in the successful compact car segment: In 2014 unit sales grew by 24.7 percent to 463,152 vehicles of the A-Class, the B-Class, the CLA and the GLA. Mercedes-Benz says it has never before delivered so many compact cars in a single year. In addition, a new sales record was achieved in the first five months of 2015, with 215,148 vehicles sold.

In line with the Mercedes-Benz 2020 growth strategy, the Mercedes-Benz Rastatt plant will significantly increase its production in the coming years. "The transformation plan for the Mercedes-Benz Rastatt plant has been pivotal for us as we could secure the production for our next generation compact cars. Our growth course will lead to significant improvements in economic efficiency and will secure employment at the location for the long term. The investment of around one billion euros provides is a clear proof, that we trust in the motivation and professional competence of the workforce at this location, which delivers top quality on a daily basis", said Stefan Abraham, Site Manager of the Mercedes-Benz Rastatt plant.