Mercedes Begins Car Production in Brazil

Daimler AG has begun building C-Class Mercedes-Benz luxury sedans at its new factory in Iracemapolis, Brazil. The plant will add GLA small crossover vehicle output this summer.

Last year Daimler posted record sales in Brazil in spite of the country’s ailing economy and shrinking car market.

The carmaker's 600 million real ($163 million) facility outside Sao Paulo has initial annual capacity of 20,000 vehicles. Daimler boasts it opened the plant, which employs 600 workers, only 19 months after deciding to build it.

Daimler says the Iracemapolis facility has “significantly” less automation than the company’s biggest factories. The factory’s layout and level of technology is a model of Daimler's future medium-size assembly plants, according to the company.