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Daimler to invest $2B in Sindelfingen Plant by 2020

30 July 2014

By 2020, Daimler will invest €1.5 billion (US$2 billion) at the Mercedes-Benz Cars Sindelfingen Plant and will significantly improve its competitive position. The company has reached a multi-year agreement with the Works Council on cost reductions in a triple-digit million euro amount. In return, Daimler will invest billions of euros in the modernization of the plant and will produce another model in Sindelfingen.

The main projects include the construction of a new body shop, a new paint shop and a new assembly hall for the new generation of the E-Class and its successors.

At the world’s biggest production plant of Mercedes-Benz Cars, a new logistics center for the new E-Class will also be established, where suppliers and service providers will be responsible for incoming and outgoing goods.

The agreement reached with the Works Council includes measures to be taken to reduce the depth of manufacturing, to increase working flexibility and to enhance efficiency. This will result in cost reductions for the company in a triple-digit million euro amount over several years.

In the coming years, Daimler will renew the range of models produced in Sindelfingen and add a new vehicle to that range. By 2020, Mercedes-Benz Cars plans to launch twelve new models without a predecessor.

The flexibility of the Sindelfingen Plant will increase significantly. For example, in order to react more flexibly to fluctuations in demand, the Mercedes-Benz Cars Sindelfingen Plant will transform existing free-shift accounts into two separate working-time accounts, the so-called “individual account” and “collective account.” In the future, overtime worked will be credited 50:50 to an employee’s individual account and the collective account, the credit upon which is at the company’s disposal. The latter can be used to manage production shifts more flexible. This is particularly important when ramping up new models and phasing out current models.

The Mercedes-Benz Cars Plant in Sindelfingen will celebrate its 100th anniversary next year. With more than 22,000 employees, Sindelfingen is the Daimler Group’s biggest production plant worldwide. At present, the S-Class sedan (normal and long wheelbase) and the S-Class coupe are manufactured there. Three additional versions are planned.

The other models produced in Sindelfingen are the sedan and wagon versions of the E-Class, the CLS and the CLS Shooting Brake. In a few weeks from now, production of the new Mercedes-AMG GT sports car will start there. The plant is the competence center for large and luxury automobiles and is also the basis of the so-called “A-Team”—a group of employees who support new model ramp-ups in the worldwide Mercedes-Benz Cars factories.

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