Daimler has unveiled plans to invest €1.5bn at the Mercedes-Benz Cars plant in Sindelfingen, Germany, by 2020.
The proposed plans are part of the company's efforts to modernize the facility to manufacture another model in Sindelfingen.
The plant is said to be the company's largest production facility in the world. It manufactures S-Class sedan and the S-Class coupe, and has a workforce of 22,000.
The company and the works council have signed a multi-year deal aimed at reducing the depth of manufacturing, increasing work flexibility and enhancing efficiency.
Daimler board of management chairman and Mercedes-Benz Cars head Dieter Zetsche said: "We are growing dynamically abroad while continuing to make enormous investments at our sites in Germany.
"The agreement combines investments for the future with the necessary savings.
This approach is the basis for our success and the foundation of our growth strategy 'Mercedes-Benz 2020'."
The projects planned include establishing a new body shop, a paint shop, an assembly hall for the new generation of the E-Class and its successors and a logistics center for the E-Class.
Daimler will move 100 employees on temporary contracts into permanent roles from this spring.
Image: The Sindelfingen plant currently manufactures S-Class sedan and the S-Class coupe. Photo: courtesy of Daimler AG.
