Mercedes-Benz is committed to using SA for the foreseeable future as a production hub for both the domestic and overseas markets.
And the giant motor company’s output will increase substantially with the manufacture of the next-generation C-Class passenger vehicle, which is expected to double at its East London factory by 2014.
This is according to Martin Zimmerman, the CEO and president of Mercedes-Benz South Africa, who was presenting the company’s 2011 financial results in Menlyn, Pretoria, this week.
Zimmerman said with the expansions at the East London factory, the company was building on its ambition to secure and create more jobs, and to invest in the factory as well as its staff.
Mercedes was driving supplier development and an increase in local content to further cement its investment in the growth of SA.
“We need to ensure that global competitiveness is not hampered by technology or efficiency gaps, and so we are rolling out plans to support our suppliers with lean manufacturing and skills development,” Zimmerman said.
Referring to the country’s ports and rail network, he said Mercedes-Benz was heartened by President Jacob Zuma’s commitment in his State of the Nation address last week to improving infrastructure and reducing port costs for manufacturers of export goods.
“An improvement in the export capacity of our ports, combined with the sustainable electricity at reduced costs announced by President Zuma, will count in favour of economic growth.”
Zimmerman said the 2011 production of 54 312 Mercedes-Benz cars was a new record, and expectations were that 2012 production would be even higher.
He said the East London factory remained a consistent world-leading, quality producer. “We base our growth in the passenger car market this year on the assumption that the market growth will slow down considerably compared with 2011, but we are confident Mercedes-Benz will continue its South African success story by further growing our business in this country and extending our leadership as the premier luxury brand.
Mercedes-Benz total revenue for 2011 was R34.9 billion – a 4 percent growth over 2010. - The Mercury