Mercedes-Benz is starting construction work for a new fully flexible passenger car plant in Russia, thereby strengthening Daimler’s industrial commitment in that market, which thus far has concentrated on commercial vehicle production.

“Establishing passenger car production in Russia is a strategic investment in an important sales market for Mercedes-Benz. We are extending our local footprint and, at the same time, strengthening our global competitiveness,” said Markus Schäfer, Member of the Divisonal Board of Mercedes-Benz Cars, Production and Supply Chain, during the groundbreaking ceremony.

The new passenger car plant in the Moscow region is scheduled to start local production in 2019 beginning with the E-Class sedan, which sets new standards as the most intelligent sedan in the business class with technical innovations such as partially automated driving. The GLE, GLC and GLS SUV models will follow subsequently.

The overall investment in the project will be more than 250 million euros (Rs 1,911 crore). Production will be managed by the newly founded company Mercedes-Benz Manufacturing RUS (MBMR). 

With a broad sales network and a large range of models, Mercedes-Benz 2016 was the leading premium automotive brand with the most sales in Russia for the fourth year in a row. In the past decade, the company has quadrupled its passenger car sales in Russia.

“The construction of the new production location of Mercedes-Benz here in Russia is the result of a constructive dialogue with Daimler AG. The commitment of such a large investor and the planned passenger car production are a sign of confidence in the stability of the Russian market and the political direction the Russian government has set for the automotive industry,” said Denis Manturov, Minister of Industry and Trade of the Russian Federation.

The Moscow region is characterised by very good logistical connections, proximity to the capital and the availability of highly qualified manpower. The new Moscovia passenger car plant is part of the Esipovo industrial park and will cover all production steps from body shop to paint shop and final assembly on a land area of around 85 hectares.

Reveal of a 3D model of the new Mercedes-Benz passenger car plant Moscovia in Russia.

Convertible factory with Industry 4.0 technologies
At the new passenger car plant, Mercedes-Benz is implementing a ‘full-flex assembly’ and state-of-the-art technologies into the production system. The production facilities are configured for maximum flexibility, so that several architectures can be produced on one assembly line. An autonomous material flow and convertible plant technology allow to react to customer demand even faster.

Through the use of warehouse baskets for supplying the assembly lines, different model series and derivatives can be integrated into series production. A so-called ‘one-roof concept’ enables fast throughput times between the shops, efficient production and short distances for the employees.

Further, Industry 4.0 measures are being implemented in the form of innovative IT technologies. The Moscovia plant will be connected with all Mercedes-Benz sites around the world which means that every single system and robot can be controlled and reprogrammed remotely.

Environment- and resource-friendly production will be implemented, for instance, through the concept of a paperless factory, heat recovery in the paintshop and the use of electric fork-lifts in plant logistics. Another major success factor is the Mercedes-Benz production system, which ensures efficient processes and high quality at all sites worldwide.

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