Mercedes-Benz announced that its Breman plant in Germany will be producing the new GLC Coupe which was unveiled at the New York International Auto Show this year.
The company said that it will transform 200 temporary jobs into permanent ones for the additional production.
It also stated that another model, C-Class Cabriolet will also be produced at the plant apart from GLC Coupe, later this year.
The German auto-giant has plans to roll out 10 different models from the Breman plant. The creation of new jobs has been decided after cooperation with the works council.
Mercedes-Benz Bremen Plant head, Peter Theurer said: "With the new agreement, we are continuing our successful transformation plan from the year 2015.
"We are gaining further flexibility while reducing the workload for our team. This puts the Bremen plant into a very good position with regard to the ambitious 'Mercedes-Benz 2020' growth strategy."
Mercedes-Benz Bremen plant works council chairman, Michael Peters said: "We are very pleased with our achievement in the negotiations with the management to create 200 permanent jobs for temporary employees in addition to our existing agreements.
"This is a great sign for the workforce and the region. The agreement gives clear prospects for the future to all temporary workers who are employed at the Bremen plant for more than twelve months.
"This is a tremendously important step for those colleagues and a major success for the team in Bremen."
Last year, as part of the transformation plan, Mercedesz-Benz invested €750m in modernizing, expanding and digitally transforming the Breman plant and to make it the global production house of C-Class.
Currently, the Bremen plant employs more than 12.500 people and assembles eight different models including The Saloon, Estate and Coupé of the C-Class, the Coupé and Cabriolet of the E-Class, the SUV GLC as well as the two Roadsters SLC and SL.
In 2016, the company had decided to assemble two new models, the C-Class Cabriolet and the GLC Coupé.
Image: Operations at the Mercedes-Benz Breman plant. Photo: Courtesy of Mercedes-Benz