German carmaker Mercedes-Benz is set to invest ZAR3bn ($302m) in South African operations to increase local output to 100,000 units annually.
Currently producing 60,000 units on an annual basis, the company plans to add new technology and a third shift to its local plant to increase the production.
Mercedes-Benz South Africa chief executive Martin Zimmermann said that lost production from the strike would be recovered by Mercedes in six to seven weeks.
"We have quite a significant order book," Zimmermann added.
Besides this, the luxury carmaker announced on 1 October 2013 that it will build a new production plant in Iracemápolis, Sao Paulo, Brazil, to manufacture Mercedes-Benz cars for the local market.
The company signed a framework contract with Brazilian President Dilma Rousseff for establishing the plant. It plans to invest €170m in the plant during the first phase.
The plant will produce the company's next-generation C-Class and GLA vehicles with the first production being planned in 2016. It will have an annual production capacity of 20,000 vehicles, and it is expected to create 1,000 new jobs.
