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Daimler plans new €500M engine plant in Poland

Daimler AG plans to invest approximately €500 million (US$576 million) in a new production facility in Poland. The first Mercedes-Benz Cars plant in Poland is to be established in Jawor, about 70 kilometers west of Wroclaw, and will produce four-cylinder gasoline and diesel engines for Mercedes-Benz passenger cars.

The location decision and implementation of the project are dependent on various final commitments regarding the investment conditions, including the granting of state aid for the investment in Jawor. The investment of approximately €500 million covers the first stage of the new engine site.

With the new facility in Jawor, we want to start the second engine production of Mercedes-Benz Cars outside Germany. This allows us to react flexibly to market changes across several plants. The powertrain production compound is managed by the lead plant in Untertürkheim.

—Frank Deiß, Head of Production Powertrain Mercedes-Benz Cars and Site Manager Mercedes-Benz plant Untertürkheim

The Mercedes-Benz Cars powertrain production comprises several German and international sites, managed from the lead plant in Untertürkheim.

  • Engines, transmissions, axles and related components are produced in Untertürkheim.

  • The focus of the Mercedes-Benz plant in Berlin is on the development and production of ultramodern components and parts as well as engine production.

  • The Mercedes-Benz plant in Hamburg develops and produces axles and axle components, steering columns, components for exhaust systems and lightweight structural parts.

  • The MDC Power engine factory in Kölleda in the German federal state of Thuringia is a wholly-owned subsidiary of Daimler AG and produces four-cylinder engines for Mercedes-Benz and Mercedes-AMG vehicles.

  • The Daimler subsidiary Star Transmission in Romania assembles transmissions and produces parts and components.

  • The joint venture BBAC in Beijing, China, produces engines for local demands.

  • As part of the strategic cooperation between Daimler and the Renault/Nissan Alliance, Infiniti produces four-cylinder gasoline engines for Mercedes-Benz at its US plant in Decherd, Tennessee.

Mercedes-Benz Cars Operations is responsible for passenger car production at 26 locations around the world; last year, Mercedes-Benz Cars produced more than two million cars of the Mercedes-Benz and smart brands, setting a record for the fifth 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 complex (engines, transmissions, axles and related components).

Each architecture production complex has a lead plant that serves as a centre of competence for the ramp-up of new products, technology and quality assurance.

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