Trade Resources Company News Daimler Plans to Establish First Passenger Car Production in Russia

Daimler Plans to Establish First Passenger Car Production in Russia

Daimler is planning to open a new facility in Russia for the production of Mercedes-Benz cars.

At Esipovo Industrial Park, about 40 kilometers northwest of Moscow, a flexible production of SUVs and the E-Class Sedan will be established.

Daimler will invest more than 250 million euros in the new production facility, where the first cars will leave the assembly line in 2019.

Mercedes-Benz Cars, Production and Supply Chain Management Divisional Board member Markus Schäfer said: “ Russia is of strategic importance for Mercedes-Benz and an attractive growth market. That is why we expand our worldwide production network with a new plant at Esipovo Industrial Park.

“By establishing a local production we do not only achieve greater proximity to our Russian costumers but also strengthen the international competitiveness of Mercedes-Benz Cars.”

With a broad sales network and a large range of models, Mercedes-Benz was the top-selling premium brand among automobile manufacturers in Russia in 2016 for the fourth year in a row. Russia remains one of the strong markets for Mercedes-Benz in Europe. Last year's bestsellers were the E-Class sedan and the SUVs.

The new passenger car plant in the Moscow region will comprise all production steps, from the body show through paint shop to assembly.

More than 1,000 jobs will be created at the site and further jobs at local service providers and suppliers. The plant is part of the industrial park of Episovo. Approximately 20 kilometers from the new plant, Daimler AG already put into operation a new aftersales wholetrade site for the Russian market in 2016.

Russian Federation Industry and Trade Deputy Minister Alexander Morozov said: “The investment of Mercedes-Benz in the local production of passenger cars indicates the strategic decision of a global manufacturer and his trust in the Russian market, regardless of the short-term market environment.

“This shows the high attractiveness of the Russian automotive industry for investors.”

Moscow Region Governor Andrey Vorobjov said: “The regional authorities believe that the local production of Mercedes-Benz passenger cars in the Moscow Region is an important component in order to create a favorable investment climate, and we will provide all necessary support to the project.

"The Moscow Region offers attractive business conditions. The establishment of the premium manufacturer’s plant will create more than 1,000 jobs and will help to attract more foreign companies in the region.”

Production at the new site is operated by the newly founded company Mercedes-Benz Manufacturing RUS (MBMR). In addition to Daimler AG, the joint venture Daimler Kamaz RUS (DK RUS) is also involved in MBMR.

In the DK RUS joint venture, Daimler has been successfully cooperating with KAMAZ since 2010 to develop the Russian commercial vehicle market. Daimler and KAMAZ each hold a 50% stake in DK RUS.

KAMAZ general manager Sergei Kogogin said: “We have many years of experience in the production and localization of vehicles in Russia.

“This is why we are planning to continue working with Daimler AG in order to strategically expand our business and thus to further develop international suppliers in Russia."

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