Daimler invests 3 billion in German factories

Daimler announced will invest 3 billion euros in developing the line of compact models.

Daimler, the second luxury car manufacturer in the world, wants to invest 3 billion in German factories to expand its line of compact models.

Manufacturer Mercedes models will increase production capacity of the plant in Rastatt, and n part of an expansion worth 600 million euros, announced Executive Director Daimler, Dieter Zetsche.

Auto manufacturers must be prepared for a polarization of increasingly high industry: cars will be either better or cheaper," said Zetsche.

Daimler invests in production equipment, in the context in which their group is the worst crisis car market.

German group, which will reduce expenses by more than 4 billion euros this year, has returned to profit in the third quarter, after nine months of the loss, amid strong demand for model Mercedes-Benz E-Class.