0 New Mercedes-Benz Compacts Continue Course of Success: Mercedes-Benz Kecskemét Plant Runs at Full Steam

Production of the new generation of Mercedes-Benz compact cars with the A-Class, B-Class and CLA model series is running at full steam in the production network of the two plants in Rastatt, Germany, and Kecskemét, Hungary. The Hungarian plant, opened in March 2012, plays an important role in this: Together with the Rastatt plant, it produces the B-Class. In addition, it is the sole production location of the compact four-door coupe CLA.

Andreas Renschler, Member of the Daimler Board of Management responsible for Manufacturing and Procurement Mercedes-Benz Cars & Mercedes-Benz Vans, stroke a first balance after about 18 months of production on the occasion of a visit to the plant: "Here in Kecskemét, we broke new ground with the construction of the first European Mercedes-Benz plant outside of Germany. It is obvious that you have mastered the construction of a new plant in a new country with a new team very well. Our investment of 800 million euros for a new compact car plant here in Hungary has founded another success story for Daimler and the Mercedes-Benz brand in every respect."

Underscoring the plant's importance for the further market success of the new compacts, Renschler said: "Especially with the CLA, for which this site has global production responsibility, the Kecskemét plant is making a decisive contribution to our growth with new customers and in new markets along the Mercedes-Benz 2020 growth strategy. Every single vehicle from this plant proves what we mean when we talk about Mercedes-Benz quality."

Renschler continued on the outlook for the employees: "Many of you are still rather young members of our global Mercedes-Benz production team. I am even more impressed to see you work in all areas of the plant with the highest commitment to learn and a great level of dedication. That's why the Kecskemét plant today is already on a par with other Mercedes-Benz plants, and is globally recognized as a natural part of our global production network. Thank you – keep up the great work!"

Frank Klein, Head of the Mercedes-Benz Kecskemét plant: "We will not rest on past achievements, but will continue to forge ahead for future success as well. That's why we are fully concentrated on our core task: to get the B-Class and the CLA on the road in top quality."

A success story: The new generation of Mercedes-Benz compact cars

Mercedes-Benz' attack in the premium compact segment continues: The Frankfurt Motor Show in September saw the presentation of the GLA compact SUV, which will roll to customers beginning in spring 2014. The GLA is the fourth of five new models that mark a significant expansion of the brand's product portfolio and appeal to new customer groups. As an example, the conquest rate of the new A-Class in Europe is at about 50 percent, the average age of the customers is 10 years lower compared to the predecessor model. Already introduced were the new B-Class, the new A-Class and the four-door compact coupe CLA. The new compacts have been a sales revelation over the past nine months: Worldwide, 267,467 customers bought an A-Class, B-Class or CLA-Class model (+68.3%). Further momentum is expected with continuously rising availability in further markets.

About the Mercedes-Benz Kecskemét plant and the production locations of the new compacts

The Kecskemét plant and the Rastatt plant together form the production network for the new generation of Mercedes-Benz compact cars. That network significantly contributes to the overall economies of compact car production and allows the flexible and optimum management of both plants' capacity utilization. The Kecskemét plant was opened in March 2012, less than four years after the initial decision for the location, and has since produced the B-Class, which is also built in Rastatt. State-of-the-art, environmentally sound technology is used at the plant. In January 2013, the new four-door compact coupé CLA was added as a second model, which the plant produces for all customers worldwide. With more than 3,000 staff in the meantime, the plant is the most attractive employer in the region, not least to due to the high attention given to the qualification of its employees. The pioneering efforts of the plant and its Hungarian partners to establish dual vocational and university education based on the German model further contribute to this. Daimler AG and the Hungarian Government in 2012 also signed a joint partnership agreement to establish and reinforce the region of Kecskemét as a center of the Hungarian automobile industry on a long-term basis.

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Detail: New Mercedes-Benz Compacts Continue Course of Success: Mercedes-Benz Kecskemét Plant Runs at Full Steam

0 Model offensive in the luxury segment: Start of Production for the New S-Class at the Mercedes-Benz Sindelfingen Plant

Some 40 years after the S-Class made its debut, employees at the Mercedes-Benz Sindelfingen plant have produced the first customer vehicle in what is now the sixth generation of this model series. "2013 is the year of the S-Class. We are driving forward our model offensive in the luxury segment. The new S-Class is opening up additional opportunities for us in the market," says Dr Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars.

Andreas Renschler, Member of the Board of Management of Daimler AG, Manufacturing and Procurement Mercedes-Benz Cars & Mercedes-Benz Vans: "The S-Class, with its many innovations, is the standard-bearer of automotive progress. And our production is breaking the mould: we made it fit for the future by implementing numerous new processes for manufacturing the S-Class." All variants are produced in an efficient and flexible process on one assembly line. And the range of optional extras is so varied that it is unlikely any S-Class will be entirely identical to another over the lifecycle of the vehicle.

This year alone Daimler has invested around €1 billion in the Mercedes-Benz Sindelfingen plant. This includes a significant outlay on the new S-Class, for which – between 2011 to 2014 – around €350 million is being invested in the body shop, around €130 million in the press shop and around €70 million in assembly, amongst others. All these investments show just how strongly the Sindelfingen site and the biggest employer in the Stuttgart region are focused on future requirements.

Employees have been undergoing extensive training in preparation for production start-up. New technologies are being used in the body shop to join cast aluminium alloys. For the aluminium lightweight roof, which is going into large-scale series production for the first time, a new manufacturing process has been developed: the roof and steel body will now only be joined once they have been through the paint shop together. Among the innovations in the production logistics is the 'pick-by-projector' system. This helps employees to pick parts by signalling to them which storage unit contains the component that is required.

Energy efficiency was a factor as far back as the planning stage for the production processes. Energy consumption per vehicle has been lowered by around 20 percent, in part through improvements to the building engineering.

Customers purchasing a new S-Class can choose from various seat variations in the rear that offer numerous settings. Behind the rear seats is a back wall module that is preassembled on its own line. As part of an ergonomic working environment, employees are able to mount the control units on the back wall module at a height that is most comfortable for them. A lifting device does the job of transporting the component into the vehicle, taking the strain off the workers.

In 2012 the S-Class was once again the world's best-selling luxury sedan. And because it was still in very high demand right up to the point that it was discontinued, the production switch-over has been integrated into the current assembly process. Since the start of production in 2005, more than half a million premium-quality S-Class models have rolled off the assembly line in Sindelfingen. For this new S-Class generation, there will be now three new models in addition to the short-wheelbase and extended wheelbase variants and the S-Class coupé.

"All of us here at Sindelfingen are enormously proud that the S-Class is made exclusively at our plant. We are able to draw on many years of experience making vehicles in the high-end, luxury class, and we do our best every day for our customers from around the world. In order to meet demand for the new S-Class in the quickest time possible, we will be working without a break right through the summer months," says Dr Willi Reiss, Head of the Mercedes-Benz plant Sindelfingen.

Erich Klemm, Chairman of the group's General Works Council and Chairman of the Mercedes-Benz Sindelfingen plant's Works Council: "We are very proud of the S-Class as a product from Sindelfingen – developed, planned, and produced here. The Sindelfingen plant's workforce is demonstrating once again that our top-of-the-line product can efficiently and economically be built in Germany and delivered around the globe. The specific advantage of our operations in Sindelfingen – the close collaboration of development, production planning, and local production – is significantly contributing to this success. Thus, the S-Class is securing many jobs in Germany – also within the automotive supplier industry."

About the new Mercedes-Benz S-Class

Through the three development focuses of 'Intelligent Drive', 'Efficient Technology' and 'Essence of Luxury', the new S-Class is pushing the boundaries of technology on a number of levels. The S-Class represents the pinnacle of engineering achievement not only for Mercedes-Benz but for the automotive industry as a whole. Whether seats or air conditioning, function or design, infotainment or comfort and safety in the rear – new ideas, their meticulous implementation and the premium appeal of the vehicle underpin the aspirations of the engineers for this top-of-the-line Mercedes-Benz model – and for themselves. The same applies to safety: what began ten years ago with PRE-SAFE and continued its evolution with DISTRONIC PLUS is today leading to a new dimension of driving that unites comfort and safety. Mercedes-Benz calls this 'Intelligent Drive'.

A multitude of new systems makes the new S-Class even safer and more comfortable. Within ten years, thanks to 'Efficient Technology', Mercedes-Benz has nearly halved fuel consumption in the 150kW power category to 4.4 litres per 100 kilometres. A new generation of the S-Class has once again brought with it a greatly improved drag coefficient, which at 0.24 is now the standard-bearer in its segment. Further aerodynamic fine-tuning enables the S 300 BlueTEC HYBRID to go one step better with a top Cd rating of 0.23. The new model is the world's first series-production car to no longer feature bulbs – only LEDs. This, too, is lighting the way to the future. The radiator grille of the new S-Class is symbolic of its confidence and ambition to lead. Bigger than ever before, it is more upright and has a pronounced three-dimensional look. With the S 400 HYBRID, S 500, S 350 BlueTEC and S 300 BlueTEC HYBRID, the new S-Class is available in a choice of two hybrids, a petrol variant and a diesel. The new S-Class has been available to order since the middle of May and is due to hit roads on 20 July 2013.

About the Mercedes-Benz Sindelfingen plant

The Mercedes-Benz Sindelfingen plant is Daimler AG's largest production facility and is the centre of competence for the high-end, luxury segment within the global production network of Mercedes-Benz Cars. Last year over 22,000 employees built more than 420,000 cars in the Mercedes-Benz C-Class, E-Class and S-Class ranges as well as the CL, CLS, and CLS Shooting Brake, and the SLS AMG.

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Detail: Model offensive in the luxury segment: Start of Production for the New S-Class at the Mercedes-Benz Sindelfingen Plant

0 Daimler plans expansion of Mercedes-Benz Cars production network

The Daimler AG Board of Management has decided to expand the Mercedes-Benz Cars powertrain production network. Following approval by the Supervisory Board, additional capacities for transmission assembly are now planned to be established at the Romanian Daimler subsidiary, Star Transmission. For the production of a new generation of automatic transmissions more than 280 million euros shall be invested in Romania. Overall, the company plans investments of more than 300 million euros there.

Andreas Renschler, Member of the Daimler Board of Management for Manufacturing and Procurement Mercedes-Benz Cars and Mercedes-Benz Vans, explains: "The expansion of our production network to include an additional location for transmission assembly is designed to perfectly complement our existing capacities. Our goal here is to serve the high customer demand with even greater flexibility in the future."

Additional capacities will be built up in view of the high capacity utilization as well as the lack of space for further expansion of transmission production in Stuttgart. "Star Transmission has been a reliable partner of our German powertrain locations for over 10 years. According to the current planning status and based on our excellent experience with Star Transmission, the preferred option for providing the additionally required assembly capacities in a flexible manner is to expand the activities there," explains Peter Schabert, Head of Powertrain Production and Head of the Mercedes-Benz Untertürkheim plant, referring to the plans for the future production network for transmissions. "Our Stuttgart transmission plant will remain the heart of transmission production for Mercedes-Benz Cars and will act as the center of competence in this production network."

Wolfgang Nieke, Chairman of the Works Council for the Mercedes-Benz Untertürkheim plant and Passenger Car Development: "The plant management and works council agreed two years ago, to set up the production of the new automatic transmission and an assembly module at the Stuttgart-Hedelfingen location. The Board of Management thus reaffirmed its commitment to the in-house production of our transmissions. The second assembly module in Sebes will be supplied from our production location. The increased demand for transmissions ensures the long-term capacity utilization of our transmission production at the Stuttgart-Hedelfingen location."

In order to transfer the Swabian expertise appropriately the Romanian employees will undergo a special qualification program. They spend several months at the Untertürkheim parent plant in quality, maintenance and logistics teams in addition to the production areas.

Daimler subsidiary Star Transmission was founded in 2001. At the moment, the company and the roughly 800 employees at the Cugir location produce components for current Mercedes-Benz car engines and transmissions as well as older generations of transmissions for the spare parts business. The decision has already been made to start production of the 5-speed automatic transmission from the middle of this year at the new location in Sebes until its discontinuation. Starting in 2014, the current generation of front dual clutch transmissions will also be assembled there. This will thus provide additional assembly capacities to complement Stuttgart, where the assembly has been concentrated to date. Subject to the support of the Romanian government for the expansion of the production capacities, it is planned that a new generation of automatic transmissions for cars will also be produced in the new production network involving the locations in Stuttgart (full production including assembly) and Sebes (assembly only) starting in 2016.

The reason for these plans is the expected, continually increasing demand for transmissions in line with the Mercedes-Benz 2020 growth strategy. The Stuttgart-Hedelfingen transmission plant, which is part of the Untertürkheim parent plant from an organizational perspective, is today already at full capacity. All available space has gradually been developed in recent years so that the site – due to its special geographical location in the upper Stuttgart Neckar Valley – has reached its maximum possible expansion level and no meaningful options for further expansion of the facilities exist there.

At the same time, any type of capacity expansion at Mercedes-Benz Cars should also contribute decisively to increased profitability in light of the fierce global competition in the premium segment. This premise naturally also applies for transmissions, which are produced in-house in contrast to the approach preferred by the competition. Overall, the future production network for transmissions is designed to ensure that the required unit figures can – even in the future – be provided in a reliable and extremely flexible manner in line with customer expectations while fulfilling the set cost targets.

About the Mercedes-Benz Cars powertrain production network

The Mercedes-Benz Cars powertrain production network consists of several locations in Germany and is being complemented by international production plants in close connection with the increasing production of Mercedes-Benz vehicles in close proximity to markets and customers. The central location here is the Mercedes-Benz Untertürkheim plant, which produces engines, transmissions and axles in a total of six plant sections. In the past fiscal year, Daimler has invested over 900 million euros here alone in the expansion and conversion of the powertrain plant sections as well as in the startup of new products and production technologies and, as a result of high customer demand, has been able to create 350 new jobs. The company is investing more than 800 million euros at the location in 2013.

The Mercedes-Benz Berlin plant produces engines and powertrain components, while the Mercedes-Benz Hamburg plant is responsible for the production of axles and various additional components. Our subsidiary MDC Power in Kölleda/Thuringia is another important engine production location; it recently received the prestigious "Factory of the Year" award. When it comes to the international locations, the Romanian subsidiary Star Transmission is responsible for the production of engine and transmission components as well as replacement transmissions. Starting this year, the Beijing production location (BBAC – a joint venture between Daimler and the Chinese partner BAIC) in China will start engine production in order to supply local production of Mercedes-Benz cars and vans. Starting in 2014 in the USA, Daimler and Nissan will – as part of the strategic cooperation between Daimler and the Renault-Nissan Alliance – start the joint production of 4-cylinder gasoline engines based on Mercedes-Benz technology at the Nissan plant in Decherd/Tennessee. One of the main customers for these engines will be the future C-Class production at the Mercedes-Benz plant in Tuscaloosa/Alabama.

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Detail: Daimler plans expansion of Mercedes-Benz Cars production network