Mercedes plans to build its next-gen small car on the same line as the GLC and the A-Class by Valmet Automotive in Finland.
Mercedes-Benz plans to expand its ties to Valmet Automotive, the Finnish company that has built electrified vehicles for companies such as Think and Fisker as well as sports cars for Porsche. It also builds the A-Class and GLC at the plant.
Daimler AG, the parent company of Mercedes-Benz, announced this week that Valmet will produce the next generation of compact cars at its plant in Uusikaupunki, Finland. The Finnish company has been building the other Mercedes vehicles at the site since 2013.
“We are convinced that the next generation of Mercedes-Benz compact cars continues on its road to success,” said Markus Schäfer, member of the Divisional Board Mercedes-Benz Cars, Production and Supply Chain Management, in a statement.
“With the follow-up order for Valmet Automotive, we utilize additional production volumes for our new compact vehicles. Working with professional cooperation partners is an important strategic pillar in our flexible and efficient production network.”
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The lead plant for Mercedes compact cars is in Rastatt, Germany, but models using the compact architecture are also being built in Hungary and China. It also will be used in a joint venture with the Renault/Nissan Alliance in a joint plant in Aguascalientes, Mexico, which is currently under construction.
The newly updated Mercedes-Benz GLA 250 4Matic could be produced in Finland.
Valmet Automotive remains the “optimal add-on of the global compact car production of Mercedes-Benz Cars,” Daimler officials said. In addition to the current Mercedes-Benz A-Class have been produced there. Both the A-Class and the GLC are produced on the same assembly line since the additional production of the mid-size SUV has added, starting last month.
“The cooperation with Valmet Automotive is extremely successful. That is why we continue this cooperation for the next generation of compact cars. Valmet Automotive meets the high standards of processes and quality. That is why we honored Valmet Automotive with the Daimler Supplier Award 2016,” said Klaus Zehender of Mercedes-Benz Cars, Procurement and Supplier Quality.
Subcontracting out vehicle production in this manner isn’t all that unusual. BMW, Volkswagen, Fiat Chrysler – and Mercedes – have used Magna International Inc. to build vehicles in Europe.
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Valmet said it would add about 1,000 new workers to help with its existing contract to manufacture Mercedes-Benz passenger cars and SUVs. The plant currently has 2,300 employees. The Finnish company’s diverse areas of expertise may prove invaluable to Mercedes.
In January, Chinese battery maker Contemporary Amperex Technology Ltd. bought a 22% stake in Valmet Automotive. If the German automaker decides to build EV using its new architecture, Valmet could theoretically take on that type of production.
Valmet also built vehicles for Fisker Automotive starting in November 2008. Production of Fisker Karma was launched by Valmet in 2011, building more than 2,000 of the Fisker Karma electric vehicles. Valmet Automotive was also a major engineering partner to Fisker Automotive.
(To see more about Daimler building a plant in Russia, Click Here.)
Between 1997 and 2011, Valmet produced 227,890 Porsche Boxster and Cayman cars. Valmet Automotive is also the engineering and manufacturing partner of the Porsche 911 Targa roof system, according to the company’s website.