Mercedes-Benz has announced plans to spend 1.5 billion euros ($2 billion) through 2020 upgrading its Sindelfingen plant and getting ready for production of a new vehicle.

Mercedes-Benz Confirms Factory Upgrades

The investment is said to be used for the modernisation of the Mercedes-Benz plant and long-term job security. Although the company has remained tight-lipped about specific details, they did however confirm they will build a new body shop, paint shop and logistics centre at the Sindelfingen site, as well as an additional assembly hall for a new version of the up-market Mercedes E-Class sedan.

The plant already builds the short- and long-wheelbase S-Class sedan and the S-Class Coupe. It will in addition build three additional S-Class models. The company also confirmed the plant will build the AMG GT and production is scheduled to begin in a few weeks.

“We are growing dynamically abroad while also investing more heavily in our German locations. The operating agreement linked to future-oriented investments with equally necessary cost optimization. This approach is the foundation of our success and the foundation of our growth strategy, Mercedes-Benz 2020. With the overall package we make Sindelfingen fit for global competition and secure employment,” said Dr. Dieter Zetsche, CEO of Daimler AG and Head of Mercedes-Benz Cars.