How will the Smart car production shift affect the Hambach site?

Question

Accepted Answer

Daimler Seeks to Sell Hambach Factory as Smart Production Relocates to China

Daimler is planning to sell its manufacturing facility in Hambach, France, as a consequence of its decision to shift Smart car production to China. This strategic move is part of a broader restructuring of Daimler's global production network and is expected to result in a significant restructuring charge for the company. The Hambach site, which previously produced both electric and combustion-engined versions of the two-seater Smart vehicles, manufactured over 80,000 cars in 2017.
Relocation of Smart Production to China

The production of the Smart brand will transition from its current base in Hambach, France, to China. This relocation is a key component of Daimler's strategy, which includes a joint venture with Geely to develop and manufacture the next generation of Smart electric vehicles. This partnership signifies a significant shift in the brand's manufacturing footprint, moving away from its European origins.
Financial Impact of Restructuring

Daimler anticipates incurring a substantial restructuring charge in the second quarter of its fiscal year due to these operational changes. This charge is expected to amount to hundreds of millions of euros, reflecting the financial implications of overhauling its production system, including the divestment of the Hambach facility.
French Government's Reaction

The decision to sell the Hambach factory has drawn a response from the French government, with Finance Minister Bruno Le Maire urging Daimler to reconsider. Le Maire expressed hope for the continued viability of the modern Hambach site, highlighting its role in producing electric vehicles and its commitment to ecological transition. He emphasized that Daimler should explore all available options, including maintaining the facility's operations.

Reading history

Hide →

This history is cleared when the page is closed.

How will the Smart car production shift affect the Hambach site?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends