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Daimler May Build Mercedes Plant in Brazil
Daimler AG plans to open a new assembly plant in Brazil in 2015 with capacity to produce 20,000 Mercedes-Benz C-Class cars per year, according to Der Spiegel.
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Daimler AG plans to open a new assembly plant in Brazil in 2015 with capacity to produce 20,000 Mercedes-Benz C-Class cars per year, according to Der Spiegel.
The German magazine, which does not cite its sources, reports that the company is expected to choose a factory site in coming months.
Daimler says it is considering such a facility but has not yet made a decision.
Mercedes hasn't built passenger cars in Brazil since it ended production of A-Class small cars at its plant in Juiz de Fora in 2010. The company currently makes commercial vehicles at that factory and another in Sao Bernardo do Campo, Brazil.
Analysts note that carmakers are scrambling to boost production in Brazil since the country hiked taxes on all vehicles last September by 30 percentage points to as much as 55%. Sao Paulo waives the increase for automakers that commit to significant levels of investment and production in Brazil.
In October BMW AG unveiled plans to erect a new assembly facility in Brazil. Volkswagen AG's Audi unit said last month it would decide in the second half of this year whether to produce vehicles there.
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