Mercedes export programme will target new markets

ED RICHARDSON DAIMLERCHRYSLER South Africa (DCSA) has confirmed that it will start production of the new Mercedes-Benz C-Class in 2007. The vehicle is destined for several new export markets, in addition to the group’s existing foreign markets, DCSA CEO and chairperson Christoph Kšpke told FTW at the recent Auto Africa 2004 expo. DCSA, which has specialised in assembling the right hand drive C Class up to now, will also produce left-hand drive versions of the new C-Class. This vehicle will only be manufactured in South Africa and Germany. Kšpke said the US would definitely be on the list. DCSA currently exports about 75% of the production from its East London plant, the bulk of which goes to the UK, Japan, Australia and other Pacific Rim countries. Kšpke did not comment on the exact amount of capital expenditure that would be needed to retool the East London plant, but said the investment would amount to over R1-billion. The plant’s installed production capacity is currently at some 50 000 units a year, but the investment will boost output to 80 000 units a year. Kšpke said the group would also increase the local content of its products with the new model, from a current 35% to 45%.