Global automobile giant DaimlerChrysler has opted to postpone for several weeks the announcement of the company’s decision regarding the expansion of its South African production plant in East London, originally expected last week, the group’s spokesperson said on Monday.
However, there is potential to “increase the significance” of the East London plant in the future.
The board of directors of DaimlerChrysler South Africa met in Cape Town last week to discuss the possibility of expanding local operations, which would involve additional foreign investment into South Africa of more than R1-billion.
The plant currently produces about 55Â 000 vehicles a year, of which more than 40Â 000 are right-hand-drive Mercedes-Benz C-class sedans. This could rise to about 90Â 000 should the company opt to manufacture a greater proportion of its total output, as well as the successor to the C-class model, in South Africa.
At last week’s meeting, DaimlerChrysler’s board confirmed its commitment to the plant in East London and emphasised the significance of the location within the worldwide production network for Mercedes-Benz passenger cars, said spokesperson Deon Ebersohn.
“Our plant in East London has a firm place in the worldwide passenger-car production network of the Mercedes-Benz brand,” said Professor Jürgen Hubbert, the DaimlerChrysler board of management member responsible for the Mercedes Car Group.
“But that’s not all. If there are further improvements in productivity, we see potential to increase the significance of our East London plant in the future,” he said.
“We have consistently met and exceeded the stringent quality and delivery targets of DaimlerChrysler since we started production of the right-hand-drive Mercedes-Benz C-class in 2000 and thus contributed to the success of the C-class in the markets worldwide,” said Dr Hansgeorg Niefer, DaimlerChrysler South Africa’s management board member for manufacturing.
“We are doing everything to prepare ourselves for the internal competition regarding future model series of the Mercedes-Benz brand.”
About 75% of the C-class production is exported to several foreign markets, with the United Kingdom, Japan, Australia and other Pacific Rim countries receiving the bulk of the exports. — I-Net Bridge