Mercedes-Benz is investing a total of BRL 500m (€159m) in the Iracemápolis plant near São Paulo with an annual capacity of 20,000 vehicles. The plant wills tart production of the C-Class in the first quarter of 2016, and production of the GLA compact SUV will follow in the middle of the year.

‘Local production will even better allow us to tap the potentials of the emerging Brazilian market and to respond more flexibly to the wishes of our customers. In the first stage, we are aiming for an annual capacity of 20,000 vehicles. If the market will develop as hoped for, the plant has the potential for a further significant expansion in the future,’ said Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management.