Mercedes-Benz is reported to be planning to install a supplier park at the site of its newest plant in Brazil, under construction in Iracemapolis. Mercedes-Benz's director of acquisitions said the goal is to have between six and 12 product or service suppliers in the area of the factory, to reduce logistics costs, report local media sources. Production at the new plant is due to start in the first quarter of 2016.
Significance: Mercedes-Benz move to ensure suppliers are nearby to the plant is consistent with its approach of localising production, as the company has also indicated plans to develop a supplier network in Mexico, along with BMW, to support new production in the country. Mercedes is forecasted to build the C-Class and GLA at its new plant, with output in the range of 11,000 upa. Important for this plant is Mercedes' efforts to have enough localisation to meet the threshold of the Brazilian government's InnovarAuto programme, which reduces tax on its imported vehicles. Mercedes began construction of the new facility in February.
