Photo: Tudor Raiciu
After it had built a transmissions factory in Romania and an assembly plant in Hungary, Daimler AG extends its central and eastern European presence with an engine plant in Poland. The new facility will be operational by 2019.
The first site of Mercedes-Benz Cars in Poland will be established in Jawor, a town located in the south-western part of the country. After Poland transitioned from communism to democracy, the private sector boomed, including heavy industry like car production. As a prime example, FCA builds the 500 and Lancia Ypsilon at Fiat Auto Poland in Tychy. This facility opened three years after Poland paved the way to the anti-communist revolutions of 1989.
History lesson over, now let’s go back to Mercedes-Benz. According to the manufacturer, some 500 million euros (roughly $574 million) will be invested in the first phase of the project, creating “several hundred new jobs” there. The second Daimler AG engine plant outside Germany after the one in Beijing, China, will produce four-cylinder turbo gasoline and diesel engines for passenger cars.
“The planned establishment of a new engine plant in Poland is a further step in our global growth strategy,” commented Markus Schafer, Member of the Divisional Board at Mercedes-Benz Cars, Production and Supply Chain Management. “Capacity expansion in Eastern Europe reflects the increasingly international orientation of our powertrain production compound. This will lead to more flexibility and efficiency in our worldwide production network,” he added.
What the mumbo-jumbo from the paragraph above means is rather simple. Depending on demand, the people in charge or production at Daimler AG will be able to fine-tune output and switch products from one factory to another. Doing this, Daimler AG is improving profitability by responding to changes in the market quickly and by shaving costs. At the end of the day, this is another step in Mercedes-Benz’s bid to outgun BMW in the race for who’s best regarding global sales. It’s as simple as that.
History lesson over, now let’s go back to Mercedes-Benz. According to the manufacturer, some 500 million euros (roughly $574 million) will be invested in the first phase of the project, creating “several hundred new jobs” there. The second Daimler AG engine plant outside Germany after the one in Beijing, China, will produce four-cylinder turbo gasoline and diesel engines for passenger cars.
“The planned establishment of a new engine plant in Poland is a further step in our global growth strategy,” commented Markus Schafer, Member of the Divisional Board at Mercedes-Benz Cars, Production and Supply Chain Management. “Capacity expansion in Eastern Europe reflects the increasingly international orientation of our powertrain production compound. This will lead to more flexibility and efficiency in our worldwide production network,” he added.
What the mumbo-jumbo from the paragraph above means is rather simple. Depending on demand, the people in charge or production at Daimler AG will be able to fine-tune output and switch products from one factory to another. Doing this, Daimler AG is improving profitability by responding to changes in the market quickly and by shaving costs. At the end of the day, this is another step in Mercedes-Benz’s bid to outgun BMW in the race for who’s best regarding global sales. It’s as simple as that.
Google News