Daimler to build new plant in Brazil to assembly Mercedes-Benz C-Class vehicles image

German carmaker Daimler plans to build a new factory in Brazil to assembly Mercedes-Benz C-Class vehicles from 2015, as rising taxes on foreign cars make it more difficult to sell in the Latin American country, German weekly newspaper Der Spiegel reported without citing any source.

For Mercedes this is not something new as the German giant begun to build A-Class vehicles in the Latin American country 1999. It was the first luxury carmaker to build vehicles in Brazil, but the company ceased to produce this type of cars in 2010 when the Germans refitted the site for the manufacture of commercial trucks.

When asked by Reuters, a Daimler spokesperson said the company was considering such a move but had made no decision yet. “We are looking at Brazil, just like various other locations,” he said.
According to Der Spiegel, Daimler would decide in the coming months where in Brazil to build the new 20,000 vehicles per year plant.

At this moment, more than 70 percent of new car sales in Brazil are concentrated among Italy’s Fiat SpA, Germany’s Volkswagen AG, and U.S.-based General Motors Co and Ford Motor Co. Last month the pace of new vehicle sales slipped, showing that even there the economy is slowing down.

Official data shows that new cars in July declined 6 percent from a year earlier to about 342,300 vehicles.

However, from the beginning of the year, there were sold over 2.14 million new vehicles – up 2.9 percent compared to the same period of 2012. Fiat remains the largest automaker by sales volume in Brazil, 2.14 million new vehicles in July.