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Mercedes-Benz Restructures Manufacturing Operations

Daimler AG's Mercedes-Benz Cars unit is scrapping its autonomous factory production system and adopting a leaner architecture based on vehicle platforms and powertrain systems.

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Daimler AG's Mercedes-Benz Cars unit is scrapping its autonomous factory production system and adopting a leaner architecture based on vehicle platforms and powertrain systems.

The new structure, dubbed Mercedes-Benz Operations, is part of a €3 billion investment program that will combine global production networks with centralized responsibility for logistics and quality.

MBO will operate four production networks, each with its own executive leader:

  • Front-wheel drive (MFA). This group will lead output of A-, B- CLA and GLA models and will be headed by Michael Gobel.
  • Rear-wheel drive (MRA). Responsible for C-, E- and S-Class cars, this team will be directed by former Bremen plant manager Andreas Kellermann.
  • SUVs (MHA) and sports cars (MSA). This unit will produce G-, GL, M- and R-Class SUVs and SL and SLK sport coupes. Heading the team is Jason Hoff, who continues as CEO of the company's U.S. factory in Alabama.
  • Powertrain (MPA). Peter Schabert, who has been responsible for global powertrain production since 2010, will lead this unit.
The new organization will adopt centralized supply chain management. It also will feature modularized plants that add production flexibility, introduce variable work hours, reduce fixed costs and boost productivity.

The C-Class production Mercedes launched earlier this year in Germany, South Africa, China and the U.S. marks the first application of the latter production strategy.

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