FRANKFURT -- Daimler is investing 600 million euros ($700 million) to expand its factory in East London, South Africa, and will build the next generation of its C-class model at the plant.
The expansion will include new paint and body shops, an upgrade of the assembly shop and new logistics warehouses, Daimler said in a statement.
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, VW Ford and BMW also build cars in the country, helped by a state-incentive plan.
Bloomberg contributed to this report