Mercedes Benz

OFFICIAL PRESS RELEASE

Stuttgart, Germany, Aug 12, 2008 - The investment will be destined to the increase of the production capacity of trucks, buses and components in the plant of São Bernardo do Campo (Brazil). The resources will also be used for the modernization of production processes, the improvement of the logistics system and the increase of the local content rate in the products.



• Mercedes-Benz do Brasil is the biggest manufacturer of commercial vehicles in Latin America
• The plant in São Bernardo do Campo, that has more than 12,000 employees, will create new jobs

Daimler Trucks has decided to expand the production capacity of trucks, buses and components in the Mercedes-Benz plant of São Bernardo do Campo, Brazil. The plant is currently running at nearly full capacity, which means that further sales growth can only be accommodated by eliminating production bottlenecks or expanding manufacturing operations. The measure aims to attend to the high demand for Mercedes-Benz commercial vehicles in Brazil and export markets. The daily production of the plant will be increased by 25%. Already in the beginning of 2009, Mercedes-Benz will be meeting the first step of this growth. “Today’s announcement clearly reaffirms our commitment to Brazil”, says Gero Herrmann, Head of Mercedes-Benz do Brasil.

This new investment aims at ensuring the plant’s competitiveness for the next decade, allowing Mercedes-Benz do Brasil attending the customers more quickly. Additionally, the company plans to optimize the production flexibility for a better reaction to market fluctuations in the future. The investment will also be used to increase the local content rate in the products, for modernization of production processes and the improvement of the logistics system.

“To attend all these aims, the company will invest R$ 1.5 billion during the next three years”, explains Gero Herrmann. Furthermore, in order to follow the increase of the local production capacity, Mercedes-Benz will also enlarge its number of employees, which presently involves more than 12,000 people. The definition of how many new jobs will be created is now being planned.

Sales leadership in trucks and buses

Mercedes-Benz is sales leader in the Brazilian truck market, having sold 22,778 units during the first seven months of the year, reaching a market share of 31%. The company also led sales in 2007, closing the year with 31,166 trucks sold with a 31% market share.
The company is also the leader in the bus segment. From January to July of this year the company sold 9,211 units in the Brazilian market, which represents a 50% share. During the year of 2007, it registered a sales volume over 12,600 units, remaining the market leader with a 52% market share.

Mercedes-Benz do Brasil is the biggest exporter of commercial vehicles in Latin America. Its products are sold to more than 50 countries, all over Latin America and other continents. Among the major markets are Argentina, Chile, Peru, Egypt, Nigeria, South Africa, and Jordan. Last year, the company sold around 9,700 trucks and 9,400 buses to external markets.
The plant in São Bernardo do Campo has produced trucks and buses for more than fifty years. The Company surpassed the milestone of 1,600,000 units produced since 1956, when it started its activities in Brazil. This is an unprecedented volume among the manufacturers of commercial vehicles in the country.

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