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Daimler Plans Mercedes-Benz Factory in Russia
Russia’s trade and industry minister tells Business World he expects Daimler AG will finalize a deal very soon to begin erecting a new Mercedes-Benz car assembly plant outside Moscow next year.
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Russia’s trade and industry minister tells Business World he expects Daimler AG will finalize a deal very soon to begin erecting a new Mercedes-Benz car assembly plant outside Moscow next year.
Daimler said last June it was in talks with the Russian government about local production. Sources told Handelsblatt at the time that the €200 million ($214 million) facility would assemble as many as 30,000 SUV/crossover vehicles per year from imported kits.
The carmaker has not confirmed the impending agreement. Rival BMW AG assembles cars kits in Kaliningrad under contract with ZAO Avtotor, and Audi builds cars and crossovers at a plant operated by its parent, Volkswagen AG, in Kaluga.
Russia’s car market has been shrinking in each of the past four years. Mercedes passenger vehicle deliveries dropped 15% in 2014 and 11% last year, according to the Moscow-based Assn. of European Businesses.
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