Daimler to increase production in China and U.S. with US$5 billion investment

The Mercedes-Benz Cars division of Daimler AG said it will invest more than US$2.4 billion in the U.S. and US$2.63 billion in China starting in 2012. The investments are part of the German car maker’s plan to boost local production and further strengthen its goal of reclaiming the top spot in the global luxury car segment by 2020. “We safeguard the way to the top through extensive investments on the expansion of our… production network,” Daimler Executive Board Member Wolfgang Bernhard explained in a corporate newsletter. Increasing production overseas is deemed crucial by European car makers because it reduces the company’s exposure to the swings that the euro and other major currencies such as the U.S. dollar and Chinese yuan are susceptible to. Although Mercedes-Benz and other European car makers manufacture majority of their vehicles and components in Europe, an increasing portion of sales come from China and the U.S. (February 1, 2012)