Daimler Invests $5 Billion in China image

Daimler AG recently declared that it will invest $2.67 billion in China and more than $2.4 billion in the U.S., trying to regain the top place in the global luxury-car segment by 2020.

These investments also include the production of a new vehicle at Mercedes-Benz’s U.S. car plant in Tuscaloosa, Alabama, from 2015, the same plant where the M-, GL- and R-Class luxury sports-utility vehicles are produced. The company also has plans to begin production of C-Class cars for the North American market there from 2014. For China, the auto maker has prepared three versions of the compact A- and B-Class vehicles, a new research and development center and a new engine plant to be built from 2013.

“We safeguard the way to the top through extensive investments on the expansion of our…production network,” Daimler executive board member Wolfgang Bernhard said in a corporate newsletter.

Mercedes-Benz plan is to double annual sales volume to about 2.7 million cars until 2020, and also building more production plants in North America and China. To accomplish this, the company will produce Mercedes-Benz 4-cylinder gasoline engines together with Nissan Motor Co. at its Japanese partner’s powertrain plant in Decherd, Tenn, beginning in 2014. Nisan and Daimler forecast a production capacity of 250,000 engines a year at the Tennessee plant, which will be used in Mercedes-Benz cars and in Nissan’s Infiniti premium brand.