April 26, 2013

Daimler plans expansion of Mercedes-Benz Cars production network

The Daimler AG Board of Management has decided to expand the Mercedes-Benz Cars powertrain production network. Following approval by the Supervisory Board, additional capacities for transmission assembly are now planned to be established at the
Romanian Daimler subsidiary, Star Transmission. For the production of a new generation of automatic transmissions more than  280-million euros shall be invested in Romania. Overall, the company plans investments of more than 300-million euros there.

"The expansion of our production network to include an additional location for transmission assembly is designed to perfectly complement our existing capacities. Our goal here is to serve the high customer demand with even greater flexibility in the future," said Andreas Renschler, Member of the Daimler Board of Management for Manufacturing and Procurement Mercedes-Benz Cars and Mercedes-Benz Vans.

Additional capacities will be built up in view of the high capacity utilisation as well as the lack of space for further expansion of transmission production in Stuttgart. "Star Transmission has been a reliable partner of our German powertrain locations for over 10 years. According to the current planning status and based on our excellent experience with Star Transmission, the preferred option for providing the additionally required assembly capacities in a flexible manner is to expand the activities there," said Peter Schabert, Head of Powertrain Production and Head of the Mercedes-Benz Unterturkheim plant, referring to the plans for the future production network for transmissions. "Our Stuttgart transmission plant will remain the heart of transmission production for Mercedes-Benz Cars and will act as the center of competence in this production network."

Wolfgang Nieke, Chairman of the Works Council for the Mercedes-Benz Unterturkheim plant and Passenger Car Development said, "The plant management and works council agreed two years ago, to set up the production of the new automatic transmission and an assembly module at the Stuttgart-Hedelfingen location. The Board of Management thus reaffirmed its commitment to the in-house production of our transmissions. The second assembly module in Sebes will be supplied from our production location. The increased demand for transmissions ensures the long-term capacity utilization of our transmission production at the Stuttgart-Hedelfingen location."

In order to transfer the Swabian expertise appropriately the Romanian employees will undergo a special qualification program. They spend several months at the Unterturkheim parent plant in quality, maintenance and logistics teams in addition to the production areas.


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