According to a Reuters report on June 21, the German car manufacturer Daimler Group began construction of a new Mercedes-Benz plant in Esipovo town in Russia on the 20th. It is 60 kilometers from Moscow and is expected to be completed in 2019. This is the first time that major foreign automakers have invested in Russia since Western countries imposed economic sanctions on Russia in 2014.
After the completion of the new plant, it covers an area of ​​85 hectares and creates more than 1,000 jobs for the local area. It can produce more than 20,000 Mercedes-Benz cars and SUVs per year.
The car manufacturer Daimler Group said in February that it would invest 250 million euros (about 279 million US dollars) in a new factory in Russia. At the same time, international investors still hold a wait-and-see attitude toward Russia due to Western economic sanctions and oil price declines. Many automakers had to shelve their local production plans. In 2012, Russian auto sales peaked, selling nearly 3 million vehicles, and then all the way down, sales fell nearly half, and GM had withdrawn from the Russian market in 2015. Recently, the Russian economy has recovered, and car sales have ushered in the first rise in four years.
Markus Schaefer, head of the Mercedes-Benz brand, said at the start of the new plant that after a "very successful dialogue" with the Russian government, the Daimler Group made the decision. In response, Moscow Mayor Andrey Vorobyov said that President Putin personally signed the agreement, allowing the local government to provide Daimler with certain preferential conditions that have never been granted to foreign investors.
For the new plant in Russia, Markus Schaefer said: "Ultimately, we hope to achieve local production. We are very optimistic about the future development of Russia." Although Mercedes-Benz's sales in Russia in 2016 fell 11% to 3,688, However, sales in May this year increased by 8% year-on-year. Markus Schaefer hopes that sales will be able to turn around in 2017 and keep growing as the new plant starts in 2019.
The outside world believes that the Russian auto industry is picking up, and some international automakers are looking to the region. The Volkswagen Group announced last week that it will strengthen sales of Volkswagen, Skoda and commercial vehicles in the region.

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