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December 3, 2009

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Daimler in move to lower costs

GERMAN car maker Daimler AG said yesterday it is to move some of its Mercedes Benz C-Class car production to its Tuscaloosa, Alabama, plant to take advantage of lower production costs and to avoid currency fluctuations.

Daimler said production of the new generation of the C-Class should start there in 2014.

The company also said employment levels at its Sindelfingen plant in southern Germany would be maintained. Workers had protested the plans over the last several days, fearing about 3,000 jobs could be lost there.

Daimler said some German production of the C-Class would be moved to the Bremen plant in northern Germany. In return Sindelfingen would get production of the SL sports coupe.

The C-Class line, which includes a sedan, coupe and wagon, is built in Sindelfingen and Bremen, as well as in South Africa and China.

The company said the move was aimed at maintaining Daimler's competitiveness.


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