Mercedes-Benz do Brasil to expand its commercial vehicle production by including Juiz de Fora plant

· Commercial vehicle production capacity of Mercedes-Benz do Brasil to increase in order to meet expected sales growth in Brazilian and Latin American markets

· São Bernardo do Campo production plant will increase its capacity to
75,000 units by 2012

· Juiz de Fora plant will join production network of Mercedes-Benz commercial vehicles starting in 2011

· Jürgen Ziegler, President of Mercedes-Benz do Brasil: “This expansion is the best option to enlarge our commercial vehicle production network in Brazil.”

São Bernardo do Campo, Brazil - Mercedes-Benz do Brasil has decided to further increase its commercial vehicle production capacity due to expected sales growth in the Latin American markets and here especially in Brazil in 2010 and the following years. To meet the need for these additional capacities, Mercedes-Benz do Brasil will start to use the facilities of the Mercedes-Benz plant in Juiz de Fora in the state of Minas Gerais in 2011. São Bernardo do Campo, the traditional production plant of Mercedes-Benz do Brasil will remain the centre of the production network in Brazil. The employment of both sites will profit from this expansion due to the expected market development and overall capacity increase.

Early this month Mercedes-Benz do Brasil already announced an investment to increase its truck and bus production capacity in the São Bernardo do Campo plant to 75,000 units per year by 2012. “Thanks to this massive investment, the production capacity limit in the São Bernardo do Campo plant will be reached and we will need additional capacity to meet upcoming demand,” said Jürgen Ziegler, President of Mercedes-Benz do Brasil.

Mercedes-Benz is confident that the Brazilian and Latin American markets for commercial vehicles, will continue to grow in the future. In view of a mid- and long-term business growth scenario, Mercedes-Benz do Brasil believes that the demand for its commercial vehicles in Brazil and the Latin American markets will even surpass the São Bernardo do Campo plant’s production capacity.

To fully capitalize on the growing commercial vehicles markets and to further bolster its leadership position, Mercedes-Benz do Brasil will again increase its production level. Therefore, the current passenger vehicle plant in Juiz de Fora will become part of the global commercial vehicle industrial network of Mercedes-Benz. The Mercedes-Benz CLC is being produced at the Juiz de Fora plant. The plant was opened in 1999 and has produced more than 140,000 Mercedes-Benz passenger cars to date.

“The decision to integrate the Juiz de Fora production plant into the Mercedes-Benz commercial vehicle production network makes sure it remains a long-term member of the Daimler family. It also gives its employees a clear perspective. The plant has a proven and well trained team. This expansion is the best option to enlarge our commercial vehicle production network in Brazil. The supplier network in this region will also be increased accordingly. We believe the expansion of our operations and the positive impact on suppliers will also support additional employment and investments in this area,” Jürgen Ziegler added.

Additional details on the utilization of the plant for commercial vehicles production will be announced as soon as the ongoing discussions with the responsible partners and institutions are finalized.