One Billion Euros for the Mercedes-Benz Rastatt plant

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Mercedes-Benz has announced its one billion euro plan to revamp the Rastatt plant in Germany set to produce the next generation of compact models. The A-Class, B-Class and B-Class Electric Drive, as well as the compact SUV GLA are manufactured at the location.

Between now and 2020, Daimler will rehaul the facility in its quest for the expansion of production in the coming years. The Rastatt plant already is the lead plant for the production of compact Mercedes-Benz cars worldwide.

“With our transformation plan for the Mercedes-Benz Rastatt plant we have laid the foundation for the successful production of the next generation of our compact cars. We will achieve significant gains in flexibility and efficiency. At the same time, we will strengthen the role of the location as the lead plant for compact cars within our global production network,” said Markus Schäfer, Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain Management.

Capacity utilization at the Mercedes-Benz Rastatt plant  is already running at a high level. In 2014, a total of 292,784 vehicles rolled off its production lines, for the entire year unit sales growing by 24.7 percent to 463,152 A-Class, B-Class, CLA or GLA models. In fact, Mercedes-Benz has never before delivered so many compact cars in a single year.

Complementary to the announced revamp plans, Daimler and Works Council have signed an agreement for package of measures which runs until the end of 2024. The plan includes more flexible working time arrangements and the creation of 250 new permanent jobs. What this means to Daimler is overall cost savings in the triple-digit million euro range.