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July 19, 2022 08:37 AM

Mercedes to invest $1.2B in van production in Spain

Mercedes will invest $1.2 billion in van production in Spain to allow expansion at the factory.

Reuters
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    Mercedes V-Class
    MERCEDES-BENZ

    Mercedes builds vans including the V-Class at its Vitoria plant in Spain.

    MADRID -- Mercedes-Benz plans to invest 1.2 billion euros ($1.23 billion) in its Vitoria plant in northern Spain after workers backed a new labor agreement, unions UGT and CCOO said.

    About 57 percent of the plant's nearly 5,000 workers voted in favor of a deal that defines working conditions and pay raises until 2026, allowing the automaker to invest in the production of new models and electric vehicles, the unions said in separate statements.

    Mercedes builds the Vito and V-Class vans at the plant.

    The automaker was not immediately available for comment.

    The company has said it expects to assemble 158,000 vehicles in Vitoria, its second largest van assembly plant, in 2022 and plans to increase output in the coming years.

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        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
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