DaimlerChrysler South Africa is confident of being awarded the contract to produce the next Mercedes-Benz C-Class and could announce a R1-billion investment in its East London plant in March.

DaimlerChrysler South Africa (DCSA) is confident of being awarded the contract to produce the next Mercedes-Benz C-Class and could announce a R1-billion investment in its East London plant in March.


DCSA’s parent company had been expected to announce its decision about the plant in November last year, but didn’t. However, DCSA spokesman Rudi Borgenheimer said the decision was never scheduled for November and that details would emerge in March.


Borgenheimer said that a R1-billion investment would equip the plant to manufacture the next Mercedes-Benz C-Class at current volumes of 55 000 units a year. However, it’s been reported that DCSA was hoping to secure a contract to near-double production.


According to , DCSA chairman Christoph Kopke said he was optimistic about securing the investment, but declined to comment on the possibility of increased volumes. An investment of R1-billion, which could spur R500m worth of investment by component makers, he added.


Borgenheimer also said there was a good possibility that the East London plant could manufacture left-hand drive vehicles in addition to the current right-hand units. This would enable DCSA to export vehicles duty-free to the US market under Agoa (US African Growth and Opportunity Act), as BMW South Africa currently does.

Original article from Car