Mercedes-Benz To Build A New Factory In Russia Next Year

Following years of speculation, Daimler has finally agreed to build a new factory in Russia, for its Mercedes-Benz brand.

Confirmed by the country’s Trade and Industry minister, Denis Manturov, who spoke with Business World on the topic, as AutoNews reports, the plant’s construction will begin in 2018, at a site near Moscow.

Manturov added that a contract will be signed shortly between the government and automaker.

Contacted by AutoNews, a Daimler spokesperson admitted that talks are underway: “We are in dialogue with the Russian government in order to check whether the economic requirements for local passenger-car production are fulfilled.“

A previous report says that Daimler will invest around €200 million ($212 million) into the factory that will able to assemble roughly 30,000 SUVs annually, from imported kits.

Once the decision becomes inal, Daimler will join BMW in the Russian market, which chose local contract manufacturer Avtotor to produce the 3-, 5- and 7-Series, along with the X1, X3, X4, X5 and X6, from kits, in Kaliningrad.

Moreover, Audi is also present in Russia, where it assembles sedans and SUVs at a plant owned by the Volkswagen Group, in Kaluga.