Mercedes Breaks Ground on New Brazilian Plant, Will Build C-Class and GLA from 2016

Mercedes-Benz continues the global expansion of its production facilities with a new plant in Iracemápolis, Brazil. It will start building C-Class and GLA models from 2016.

Located near the São Paulo metropolis, the new passenger cars assembly plant will start production of the C-Class in the first quarter of 2016, followed by the GLA SUV in the middle of the year.

The facility has an initial annual production capacity of 20,000 units, but depending on the market’s evolution Mercedes-Benz says it can significantly expand output in the future.

Mercedes-Benz is investing a total of BRL 500 million ($180.5 million) in the Iracemápolis plant, which will create about 600 new jobs until the start of production. Additionnally, some 3,000 jobs are expected to be generated in the region predominantly with suppliers and service providers.

“With the new Mercedes-Benz plant in Iracemápolis, we will be the only company producing the full vehicle range in Latin America – from passenger cars and vans to trucks and buses. The new plant in Iracemápolis is further proof to our commitment to Brazil,” said Philipp Schiemer, President of Mercedes-Benz do Brasil and CEO Latin America.

The automaker said the new plant’s level of automation will be significantly lower than in traditional Mercedes-Benz plants. “Machines don’t develop, build, or sell cars –people do. That’s why our focus is on our employees. With this approach, Iracemápolis will be one of the most flexible plants in our global production network, indicating our future trend,” said Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management.

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