Daimler aims to increase annual output to three million vehicles as demand grows

Daimler is committed to raising its production rate for its vehicles to around three millions units per year.

The German automaker, which owns Mercedes-Benz, is set to react to growing customer demand around the world by increasing its annual output by a significant 25% from 2.4mn vehicles.

Details published by weekly magazines Automobilwoche revealed Daimler's commitment to opening three new major production sites around the world and ringfencing €3bn of capital to achieve its lofty target. Mercedes-Benz is also set to increase its number of models to 40.

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"The sites in our global production network are running at high utilisation rates," Markus Schaefer, board member in charge of manufacturing and procurement at Mercedes-Benz Cars, told Automobilwoche. "That’s why we are expanding our capacities according to market demand and are moving towards three million units."

The investment's impact on Daimler's bottom line will be countered by further spending on new technologies as the manufacturer pours more money into electric and autonomous solutions, with earnings before tax set to stay at a similar level in 2018 as 2017.

Earlier this month, Business Chief reported that Daimler is primed to acquire 100% control of German carsharing service car2go Europe for €70mn from Europcar Group.