Saturday, January 16, 2010

Mercedes-Benz Reshuffles Production, Next C-Class to be Built in Bremen and U.S. Plants from 2014, No Lay-offs in Sindelfingen Until 2020

Daimler AG's management and workers have reached an agreement to preserve jobs at the firm's Sindelfingen plant in Germany until the end of 2019 following the automaker's decision to reorganization its worldwide production network and discontinue the manufacturing of the C-Class in Sindelfingen in 2014 after more than 25 years.

The company said that this comes a result of its decision to produce the next generation of the E-Class and the S-Class in Sindelfingen, thus avoiding layoffs for operating reasons at the plant until December 31, 2019.

The automaker's plans include the concentration of the European C-Class production in 2014 at the firm's Bremen plant with additional production in the United States at its Alabama factory for the local market.

Mercedes' decision to build the North American-bound next C-Class in the States means that the vehicle's profit margins will no longer be vulnerable to the shifting exchange rates between the USD and the Euro.

Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars said: "With the decision on our new plant for compact cars in Hungary, the reorganization of C-Class production as of 2014, and the production commitment for the E-Class and the S-Class, we have set the course for the future of our key models."

"This long-term strategic planning will give us additional growth opportunities and will make a significant contribution towards improving our competitiveness. This is the best way to protect jobs in Germany over the long term," Zetsche added.

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