Mercedes has announced plans to invest approximately one billion euros into their Rastatt plant to support the production on their next-generation of compact models.

The company declined to say when the next-generation models will arrive but confirmed the investment will be made between now and 2020.  The funds will be used to "significantly increase" production capacity as well as hire 250 new permanent employees.

In a statement, Mercedes board member Markus Schäfer said "With our transformation plan for the Mercedes-Benz Rastatt plant we have laid the foundation for the successful production of the next generation of our compact cars. We will achieve significant gains in flexibility and efficiency. At the same time, we will strengthen the role of the location as the lead plant for compact cars within our global production network."

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