Daimler aims to increase Mercedes output

By the end of the decade three new production sites will come on stream

GENEVA, SWITZERLAND - MARCH 06: Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG. Head of Mercedes-Benz Cars drives Mercedes AMG G 63 on the stage during the Press Conference at the 88th Geneva International Motor Show on March 6, 2018 in Geneva, Switzerland. Global automakers are converging on the show as many seek to roll out viable, mass-production alternatives to the traditional combustion engine, especially in the form of electric cars. The Geneva auto show is also the premiere venue for luxury sports cars and imaginative prototypes. (Photo by Robert Hradil/Getty Images)

A Mercedes AMG G 63 at the 88th Geneva International Motor Show, Switzerland. Daimler plans to boost output of Mercedes cars. Robert Hradil/Getty

Reuters

Mar 18, 2018

Germany's Daimler is in a push to boost production capacity as its Mercedes-Benz Cars unit eyes annual sales of 3 million vehicles, up from 2.4 million last year, an executive told weekly publication Automobilwoche.

“The sites in our global production network are running at high utilisation rates,” Markus Schaefer, board member in charge of manufacturing and procurement at Mercedes-Benz Cars, was quoted as saying.

“That’s why we are expanding our capacities according to market demand and are moving towards 3 million units.”

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Another element in the plan is an increase in the number of Mercedes-Benz models to 40.

By the end of the decade three new production sites will come on stream: compact models will be assembled in Aguascalientes, Mexico from the third quarter of this year; a new site in Kecskemet, Hungary, will be built by end-2019; and the company is planning to add a second site in Beijing, Automobilwoche said.

Total investment in these projects amounts to $3.7 billion, it added.

The German automaker said last month that an expected rise in unit sales and revenue in 2018 will be countered by spending on new cars and technologies, forecasting earnings before interest and tax (EBIT) at a similar level as 2017.