By William Boston
BERLIN-- Daimler AG said it would invest EUR500 million ($551.7
million) over the next few years to transform a Mercedes-Benz
factory in Berlin in to a production center for high-tech engine
components that reduce exhaust emissions.
The move comes as auto manufacturers are under increasing
pressure from regulators to slash emissions that are believed to
cause global warming. The drive to reduce carbon dioxide output is
fueling investment by car manufacturers and their suppliers in
electric vehicle development and technology to make conventional
combustion engines more efficient.
Daimler will invest about EUR150 million in the plant this year.
The rest of the planned investment will follow over the next few
years.
The plant, built in 1902, employs about 2,500 workers. The
agreed investment is the result of negotiations with the
Mercedes-Benz works council over securing manufacturing jobs at the
plant.
The agreement with the works council will "put the entire
production of the Mercedes-Benz plant in Berlin on a modern and
competitive footing--and represent a clear commitment to our
location in the capital, " said Peter Schabert, head of powertrain
production and site manager for Mercedes-Benz's Untertürkheim
plant.
At its factory in Berlin, the oldest in operation in Daimler's
global network, Mercedes-Benz already manufactures high-precision
transmission components, camshaft adjusters and fuel systems. The
new investment will make the plant a global center for the
company's Camtronic valve timing system that reduces carbon dioxide
emissions, the company said.
Write to William Boston at william.boston@wsj.com
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