Mercedes-Benz stretches its tentacles towards the East, planning to establish its first passenger car production in Russia. The company will invest over 250 million euros in the new production facility that is set to start operating in 2019.
The future Mercedes-Benz plant will be located at Esipovo Industrial Park, approximately 40 kilometers northwest of Moscow. Mercedes SUVs, but also the E-Class sedan will roll off the Russian assembly lines.
The new facility is set to include all production stages, from body construction to paint shops and assembly, creating more than 1,000 in-house jobs, together with other positions at local service providers and suppliers.
“Russia is of strategic importance for Mercedes-Benz and an attractive growth market. That is why we expand our worldwide production network with a new plant at Esipovo Industrial Park,” says Markus Schäfer, Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain Management. “By establishing a local production we do not only achieve greater proximity to our Russian costumers but also strengthen the international competitiveness of Mercedes-Benz Cars.”
Mercedes-Benz was the top-selling premium car brand in Russia in 2016, for the fourth consecutive year, with the E-Class sedan and the SUV ranges taking center stage. The Eastern empire remains one of the strongest markets for Mercedes-Benz in Europe.
“The investment of Mercedes-Benz in the local production of passenger cars indicates the strategic decision of a global manufacturer and his trust in the Russian market, regardless of the short-term market environment,” says Alexander Morozov, Deputy Minister of Industry and Trade of the Russian Federation. “This shows the high attractiveness of the Russian automotive industry for investors.”
Production at the new site will be operated by the newly established company Mercedes-Benz Manufaturing RUS (MBMR). The joint venture Daimler Kamaz RUS (DK RUS), owned by Daimler and KAMAZ, each holding a 50% stake, is also involved in the process.