Austerity Measure Eastward Enlargement Daimler Truck Builds New Plant in the Czech Republic

Source: dpa 2 min Reading Time

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Daimler Truck wants to become more competitive with a cost-cutting program, which is why part of the truck production is to be shifted to the Czech Republic ...

Daimler Truck will be building even more trucks at its Czech plant in Cheb in the future. This is because it is now being expanded for strategic cost-saving reasons ...(Image: Daimler Truck)
Daimler Truck will be building even more trucks at its Czech plant in Cheb in the future. This is because it is now being expanded for strategic cost-saving reasons ...
(Image: Daimler Truck)

In order to save costs ("Cost down Europe" program) and ultimately make itself more competitive, the commercial vehicle manufacturer Daimler Truck intends to relocate part of its truck production to the Czech Republic in the future, it was announced today. The Mercedes-Benz Trucks business unit intends to expand its European production network by the end of this decade with a new assembly site in Cheb (in the west of the Czech Republic and therefore close to the German border), according to a statement from Leinfelden-Echterdingen. The new site is designed for a production capacity of around 25,000 units per year. A good 1,000 jobs are to be created there as a result. Daimler Truck will invest a low to mid 3-digit million euro amount in the new site, as we have also learned.

The Lion's Share of Trucks Will Continue to Be Served from Wörth

With the expansion and relocation, the company aims to become more efficient, more resilient and more flexible. This is also being done in the face of increasing complexity due to the growing number of vehicle variants. However, the Wörth am Rhein site (Rhineland-Palatinate) will remain the lead and volume plant in the production network. However, the company is gradually reaching its limits in terms of space. How much of the Wörth production will move east was not revealed. Managers admit that in normal years there will be fewer trucks coming off the production line in Wörth than before. However, this would also affect the Turkish plant in Aksaray. Nevertheless, the employees at the German plants will also benefit from Cheb. After all, the lion's share will continue to roll out of Wörth. Cheb gave Daimler Truck the necessary breathing space, so to speak. However, Wörth will continue to be kept fit for the future. Anyone who remembers: Last year, Daimler Truck's profits plummeted by 34 percent.

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