Report – Daimler to reach decision soon over proposed Russian plant for Mercedes-Benz image

German automaker Daimler AG, the parent company of Mercedes-Benz, the world’s third largest premium carmaker, is nearing down a decision on the upcoming plant it intends to build in Russia.

According to a Russian media report, the company is almost finished with its location scouting, closing down on three potential sites for the upcoming Mercedes-Benz factory. The Russia Today story further stated Daimler would ultimately decide in May if they were willing to invest in Russia to construct a Mercedes-Benz assembly facility. A positive factor for the carmaker is that its vehicle sales are increasing in a country where all others are plunging. The report further stated that among probable sites are included St. Petersburg, Tatarstan’s capital, Kazan, or the central Russian region of Sverdlovsk. The investment drive has been further backed by president of the Russian investment agency “Invest in Russia”, Yuri Spiridonov, who told media representatives that Daimler would begin working on the plant before the year’s end and would reach full production quota sometimes in 2017. According to the official, Mercedes would produce locally the S class, E class, GL, ML and A class models.

The Russia report also stated that one of Daimler’s existing agreements – with another carmaker such as GM – would allow it to start producing Mercedes cars even ahead of that schedule. General Motors would be a logical production partner after the largest US automaker announced it would stop selling the Opel brand and most of its Chevrolet models in Russia because of the massive auto market downturn. That decision has rendered idle the automaker’s assembly facility in St. Petersburg.

Via Automotive News Europe