Daimler wants to reduce production.
Most automakers are restarting their production and restructuring the organizations to compensate for the adverse effects of the coronavirus. Some companies are now fast-tracking plans that were in the works for months. Daimler just announced that it will invest heavily in future technology over the next few years with the goal to achieve CO2-neutral mobility. It’s not cheap to develop new technology. With the application of the same technologies across production lines, training employees, and supplying parts, costs can quickly add up for electrification, digitalization, and other company processes. Daimler is looking to sell its Hambach, France car assembly plant. This will require a serious reorganization and review of the company’s global production network. This is the same plant that has been producing mart car for many years.
Ola Kallenius (Chairman of the Board of Management of Damiler AG & Mercedes-Benz AG) stated that the goal to transform the company’s products and business is moving as fast as possible. We are constantly implementing efficiency-enhancing measures in light of future high investment, particularly in electrification, and digitalization. All areas of the company are affected. We are also optimizing our global production network in light of the new market conditions created by the COVID 19 pandemic. We are therefore ready to begin negotiations for the Hambach plant’s sale.
Markus Schafer, Member of Daimler AG’s Board of Management and Mercedes-Benz AG’s COO, commented that this economic phase requires a balance of capacity and demand. These changes also impact the Hambach plant. We want to ensure the future of this location. This is an important goal. Hambach will continue to produce the Smart models. Since October 1997, the Hambach plant began producing the fourth generation Smart EVs. It is equipped with the Smart EQ Fortwo Cabrio and Smart EQ Fortwo Cabrio. It employs approximately 1,600 people and has produced more that 2.2 million Smart Fortwos.