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Mercedes turns East
Page 6
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• Mercedes-Benz is on the verge of clinching the first ever truck manufacturing agreement between East and West Germany.
It has concluded a "memo of understanding" with major East German manufacturing group IFA and as soon as the East and West German governments have pushed through the necessary legislation on joint ventures, Mercedes will be able to move into the East German market.
Mercedes-Benz plans initially to produce cabs for IFA's medium-sized L60 commercial vehicle, while working on modernising IFA's plant and vehicle design.
Mercedes expects to complete the modernisation programme in less than three years when it will begin production of western-standard vehicles. A new model will be developed as part of the joint venture.
IFA is producing 40,000 CVs a year, mostly light and medium rigids, of which half are exported throughout Eastern Europe. It has 24 plants, but Mercedes thinks that only three of them are suitable for a joint venture.