Report: Mercedes-Benz targets annual sales of 2.7 million by 2020 image

Daimler AG plans to more than double production capacity of Mercedes-Benz vehicles to 2.7 million by 2020 as the company wants to become the world’s largest premium carmaker.

The figures appeared in a report from German business magazine Manager Magazin. According to the report, Daimler CEO Dieter Zetsche plans to build a new plant in China and another in either the United States or Mexico to meet the sales target. Daimler wants to overtake rivals BMW and Audi as the top manufacturer of luxury cars by 2020. Mercedes-Benz sales in 2011 totaled 1.26 million units, 120,000 units less than BMW’s sales.

Manager Magazin also quoted sources at Daimler saying the carmaker also targets an operating margin of more than 10 percent in 2020. By 2017 or 2018, the new North American plant would begin manufacturing the next generation A-Class together with its strategic partner Nissan. For 2015, Mercedes maintains its 1.6 million vehicle sales target.

Daimler Trucks also wants a 10 percent operating margin by 2020 to beat Swedish rival Volvo, the magazine added. In order to do that, Daimler’s truck division is considering whether to acquire majority control of Russian truckmaker Kamaz. Daimler owns 11 percent of Kamaz.