Daimler Invests 300M Euro in Romania Transmission Production image

Daimler will invest 300 million euro to add transmission production in Romania, after its main German plant reached full capacity.

By the middle of this year Daimler will begin manufacturing five-speed automatic transmissions at a new plant located in Sebes, a town located near to Cugir, where there is already a parts factory. Production of front dual-clutch transmissions will start in 2014 and in 2016 Daimler will add capacity for the next-generation of drivetrains.

Daimler manufactures parts for engines and transmissions in Romania since 2001 and decided to add capacity here as Mercedes expands its line-up of compact vehicles. Last year the German automaker also opened an 800-million-euro plant in Hungary where it produces the Mercedes B-Class and CLA compacts.

CEO Dieter Zetsche said the automaker plans to regain the first place in global luxury-vehicle sales by 2020 and boost Mercedes’ operating profit 10% of sales. Today, April 24th, Daimler announced it cuts its profit forecast for this year after earnings during the first quarter fell more than analysts’ predictions and sales in China were weaker than expected.

“In the first three months of this year, many markets developed worse than expected for economic reasons, especially Western Europe,” Chief Executive Officer Dieter Zetsche said in the statement.

Source: Bloomberg