Daimler to invest 1.5 bil EUR at its Main Mercedes-Benz Powertrain Plant in Germany image

Daimler Ag, on Friday announced that will invest more than EUR 1.5 Billion at its Main Mercedes-Benz Powertrain Plant in Stuttgart-Untertürkheim, Germany by the end of 2012.

The German automaker said in all, more than 1.5 billion euros are to be invested in the extension and conversion of various parts of the plant and in the launch of new products and production technologies.

“These investments represent an important contribution to the implementation of our Mercedes-Benz 2020 growth strategy.”

“These investments will ensure that we continue to play a role in shaping the ongoing evolution of mobility from our base here.”

The investments will be allocated to extension and conversion measures and to new manufacturing technologies in the area of axle, transmission and engine production – for the new generation of compact cars, for example. 270 million euros are earmarked at the Hedelfingen subplant for the ramp-up of the new dual clutch transmission, which is being deployed in the new Mercedes-Benz B-Class.

Next year will also see the commissioning of a die-casting laboratory in which 30 million euros have been invested. This lab will serve to simulate and optimize casting processes and to develop tool concepts.

The announcement comes after the maker of premium S Class sedan said back on July it will invest more than $2 billion in its car plant in Tuscaloosa, Alabama – US, to build more M-Class SUVs, the successor generations of the GL-Class and the C-Class.