Report: Mercedes considers outsourcing transmission production

Mercedes is considering outsourcing production of transmissions for the next generations of its A-, B- and C-class models to cut costs and improve innovation, auto motor und sport reported, citing company sources.

This could lead to the closure of the German carmaker's production site in Zuffenhausen, Germany, which employs 550 workers, the report said, adding that Daimler CEO Dieter Zetsche no longer considers transmission production to be a core competence.

Mercedes-Benz reportedly wants to purchase an eight-gear double clutch transmission from a supplier, possibly Getrag or ZF. The technology, which lowers consumption and CO2 emissions, would be costly for the carmaker to develop and produce itself.

A spokesman for DaimlerChrysler declined to comment.

German Press Agency contributed to this report

You may e-mail Mark Stevens at mstevens@craincom.de

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