Daimler AG expands its worldwide production network and plans to establish its first passenger car production in Russia. At Esipovo Industrial Park, about 40 kilometers northwest of Moscow, a flexible production of SUVs and the E-Class Sedan will be established. Daimler will invest more than 250 million euros in the new production facility, where the first cars will leave the assembly line in 2019.
“Russia is of strategic importance for Mercedes-Benz and an attractive growth market. That is why we expand our worldwide production network with a new plant at Esipovo Industrial Park,” says Markus Schäfer, Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain Management. “By establishing a local production we do not only achieve greater proximity to our Russian costumers but also strengthen the international competitiveness of Mercedes-Benz Cars.”
With a broad sales network and a large range of models, Mercedes-Benz was the top-selling premium brand among automobile manufacturers in Russia in 2016 for the fourth year in a row. Russia remains one of the strong markets for Mercedes-Benz in Europe. Last year’s bestsellers were the E-Class sedan and the SUVs.
The new passenger car plant in the Moscow region will comprise all production steps, from the body show through paint shop to assembly. More than 1,000 jobs will be created at the site and further jobs at local service providers and suppliers. The plant is part of the industrial park of Episovo. Approximately 20 kilometers from the new plant, Daimler AG already put into operation a new aftersales wholetrade site for the Russian market in 2016.
“The investment of Mercedes-Benz in the local production of passenger cars indicates the strategic decision of a global manufacturer and his trust in the Russian market, regardless of the short-term market environment,” says Alexander Morozov, Deputy Minister of Industry and Trade of the Russian Federation. “This shows the high attractiveness of the Russian automotive industry for investors.”
Andrey Vorobjov, Governor of the Moscow Region adds: “The regional authorities believe that the local production of Mercedes-Benz passenger cars in the Moscow Region is an important component in order to create a favorable investment climate, and we will provide all necessary support to the project. The Moscow Region offers attractive business conditions. The establishment of the premium manufacturer’s plant will create more than 1,000 jobs and will help to attract more foreign companies in the region.”
Production at the new site is operated by the newly founded company Mercedes-Benz Manufacturing RUS (MBMR). In addition to Daimler AG, the joint venture Daimler Kamaz RUS (DK RUS) is also involved in MBMR. In the DK RUS joint venture, Daimler has been successfully cooperating with KAMAZ since 2010 to develop the Russian commercial vehicle market. Daimler and KAMAZ each hold a 50 percent stake in DK RUS.
“We have many years of experience in the production and localization of vehicles in Russia,” said Sergei Kogogin, General Manager of KAMAZ. “This is why we are planning to continue working with Daimler AG in order to strategically expand our business and thus to further develop international suppliers in Russia.”
Mercedes-Benz Cars Operations
Mercedes-Benz Cars Operations is responsible for passenger car production at 29 locations around the world within a flexible and efficient production network involving about 78,000 employees. Its tasks include the key functions of planning, technology factory, logistics and quality management. Last year, Mercedes-Benz Cars produced more than two million cars of the Mercedes-Benz and smart brands, setting a record for the sixth consecutive year. The network is organized around the production architectures of front-wheel drive (compact cars) and rear-wheel drive (for example S-, E- and C-Class) as well as the SUV and sports cars architectures. There is also a powertrain production compound (engines, transmissions, axles and related components). Each architecture production compound has a lead plant that serves as a centre of competence for the ramp-up of new products, technology and quality assurance. The focus of day-to-day work is on the continuous improvement and refinement of state-of-the-art production methods, which allow future high-tech vehicles to be produced in a way that is efficient, flexible and environmentally friendly, according to the typical Mercedes-Benz quality standards. All of this revolves around the employees and their expertise, whose work is systematically supported by ergonomic workplace design and intelligent automation. In addition to its own production plants, Mercedes-Benz is increasingly leveraging partnerships and utilizing capacities at contract manufacturers as part of its growth strategy.