German luxury carmaker intends to strengthen Russian supplier network for new passenger car plant in Moscow.
11 Nov 2017 | 5198 Views | By Autocar Pro News Desk
Mercedes-Benz has hosted a supplier forum in Moscow yesterday to strengthen Daimler´s industrial commitment in Russia. After the ground-breaking ceremony for the new Mercedes-Benz passenger car plant Moscow, which was held in June this year, the first vehicles are planned to run off the line in 2019.
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Mercedes-Benz has hosted a supplier forum in Moscow yesterday to strengthen Daimler´s industrial commitment in Russia. After the ground-breaking ceremony for the new Mercedes-Benz passenger car plant Moscow, which was held in June this year, the first vehicles are planned to run off the line in 2019.
With the supplier day, Mercedes-Benz is seeking to prepare potential suppliers for the future production programme in Russia. ”We will produce our best-sellers for the regional market at the new Mercedes-Benz Moscovia plant on a fully flexible basis. To do so, we count on local partners that provide us with top quality and innovations. Thus, we are following our general localisation strategy to buy materials, where our production operations are based,” said Dr Klaus Zehender, Member of the Divisional Board of Mercedes-Benz Cars, Procurement and Supplier Quality. Mercedes-Benz attaches special importance to the local settlement.
Potential local suppliers could be given the opportunity to export their components from Russia to other Mercedes-Benz plants around the world.
In addition to more than 100 Russian suppliers, the participants also included local representatives from politics and business as well as Mercedes-Benz delegates from purchasing, quality and production departments. Amongst the attendants of the Mercedes-Benz Supplier Forum was Denis Butsaev, Deputy Chairman of the Moscow Region Government, Minister of Investments and Innovations of the Moscow Region.
“We continue to rely on a close cooperation with our Russian partners. The rapid construction progress already indicates the dimension of the new plant. The supplier forum is part of our strategic commitment to the Russian market,” said Axel Bense, CEO of the Mercedes-Benz Manufacturing RUS (MBMR) production company.
According to the company, there is considerable progress at the construction site since ground-breaking five months ago. Construction is in full swing and the outlines of the production building, paint shop and administration building can be clearly seen already. The infrastructure in the surrounding area develops with the active support of the local and federal government and authorities based on a mutually trustful cooperation. The Ministry of Industry and Trade provided a list of suppliers in Russia to Daimler to support the supplier search for the local production.
Together with local authorities and employment agencies, Mercedes-Benz is going to select and recruit its staff. The hiring process with a focus on the Moscow region will start in the second quarter of 2018. The settlement of suppliers may also add further jobs to the region.
Mercedes-Benz production activities in Russia
Mercedes-Benz has been present in Russia since 2010 with production operations for vans and trucks and thus already has an existing supplier network. The shell of the new passenger car plant can already be seen on an area of 85 hectares in the Esipovo Industrial Park, 40 kilometres from Moscow. Production will initially start with the E-Class saloon, gradually followed by the SUV models GLE, GLC and GLS. Overall, Daimler AG is locally investing more than 250 million euros. All production steps from body shop and paint shop to final assembly will be performed at the plant. With an extensive sales network and a large model range, Mercedes-Benz claims to be the automotive premium brand with the most registrations in Russia since 2013. In the last 10 years, the company has quadrupled its passenger car sales in Russia.