The transformation plan for the plant covers further technological development and the long-term safeguarding of jobs.

It will also strengthen the position of the Rastatt as the global lead plant for compact cars, with plans to significantly increase its production in the coming years.

Markus Schäfer, Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain Management, said: "With our transformation plan for the Mercedes-Benz Rastatt plant we have laid the foundation for the successful production of the next generation of our compact cars. We will achieve significant gains in flexibility and efficiency. At the same time, we will strengthen the role of the location as the lead plant for compact cars within our global production network."