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Mercedes-Benz begins construction on new €250M passenger car plant in Russia

Mercedes-Benz is starting construction on a new fully flexible passenger car plant in Russia. Daimler’s industrial commitment in Russia has so far has concentrated on commercial vehicle production. The new passenger car plant in the Moscow region is scheduled to start local production in 2019 beginning with the E-Class Sedan; the SUV models GLE, GLC and GLS will follow subsequently. In total, the company is investing more than €250 million in the location.

Production will be managed by the newly founded company Mercedes-Benz Manufacturing RUS (MBMR), headed by Axel Bense.

With a broad sales network and a large range of models, Mercedes-Benz 2016 was the automotive premium brand with the most registrations in Russia for the fourth year in a row. In the last ten years, the company has quadrupled its passenger car sales in Russia.

The Moscow region is characterized by very good logistical connections, the proximity to the capital and the availability of highly qualified personnel. The new Moscovia passenger car plant is part of the Esipovo industrial park and will cover all production steps from body shop to paint shop and final assembly on a land area of around 85 hectares.

At the new passenger car plant, Mercedes-Benz is implementing a “full-flex assembly” and state-of-the-art technologies into the production system. The production facilities are configured for maximum flexibility, so that several architectures can be produced on one assembly line. An autonomous material flow and convertible plant technology allow to react to customer demand even faster. Through the use of warehouse baskets for supplying the assembly lines, different model series and derivatives can be integrated into series production.

A so-called “one-roof concept” enables fast throughput times between the shops, efficient production and short distances for the employees. Further Industry 4.0 measures are being implemented in the form of innovative IT technologies. The Moscovia plant will be connected with all Mercedes-Benz sites around the world which means that every single system and robot can be controlled and reprogrammed remotely.

Environment- and resource-friendly production will be implemented, for example, through the concept of a paperless factory, heat recovery in the paintshop and the use of electric fork-lifts in plant logistics.

Mercedes-Benz Cars Operations is responsible for passenger car production at 29 locations around the world as part of a flexible and efficient production network involving round about 78,000 employees. This includes the central functions of production planning, technology fabric, logistics, and quality. Mercedes-Benz Cars produced more than two million Mercedes-Benz and smart passenger cars last year, marking the sixth record in a row.

The network is based on the product architectures of front-wheel drive (compact cars) and rear-wheel drive (for example the S-Class, E-Class, and C-Class) as well as the SUV and sports car architectures. In addition, there is a powertrain production compound (engines, transmissions, axles and components). Each of these production compounds is grouped around a lead plant that serves as a center of competence for the ramp-up of new products, technology and quality assurance.

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