Mercedes Investing €600M to Build Small Cars in Germany

MercedesMercedes-BenzGermany, 1924 > present197 models
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is investing €600 million into its Rastatt, Germany, factory to add a third shift to build the A-Mercedes-Benz A-Class Gen.3 [W 176]Germany, 2012 > present33 versions
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, B-ClassMercedes-Benz B-Class Gen.2 [W246]Germany, 2012 > present42 versions
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and a new compact SUV. The new shift will start work in October. 

"By 2020 at the latest we want Mercedes-Benz to be the No. 1 in the premium segment, also in terms of vehicle sales. Our new compacts are among our best weapons in this product offensive. Over the next 10 years the global market for premium compacts will grow by almost 4 million vehicles," said Daimler CEO Dieter Zetsche.

While Rastatt's third shift will start in October, DaimlerDaimlerGermany, 1889 > present12 models
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plans to add 21 extra shifts to its factories worldwide next year to increase production.

Daimler is also planning a push into compact models. The new A-Class started production on Monday; the B-Class has recently been upgraded; it announced plans to build a compact SUV on the A-Class platform, and there will be an A-Class couple as well. Mercedes has also discussed the possibility of a smaller shooting brake as well. 

Mercedes built 1.26 million vehicles last year, which lags behind 1.3 million from AudiAudiGermany, 1909 > present83 models
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and 1.38 million from BMWBMWGermany, 1918 > present87 models
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. It intends on overtaking them in the next few years. 

Source: Automotive News Europe