(Bloomberg) -- Mercedes-Benz AG will invest 600 million euros ($700 million) in expanding its South African plant, affirming its commitment to the country as President Cyril Ramaphosa strives to revive the economy.
The unit of Germany’s Daimler AG will expand the facility in the coastal city of East London to accommodate production of the new generation of C-Class models, the automaker said in an emailed statement Tuesday. The announcement came during a visit by Ramaphosa, who is seeking to lure $100 billion in new investment in the economy as a whole.
The auto industry accounts for about 7 percent of South Africa’s gross domestic product and has been one of the few highlights of a period of sluggish growth. Toyota Motor Corp., Ford Motor Co. and BMW AG are also building cars in the country, helped by a state-incentive plan.
Read more on the South African government’s strategy for the auto industry.
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