Earlier this year, DaimlerChrysler refused to confirm reports that it would be producing the next C-Class range in South Africa, but labour unrest in Germany could improve the chances of the C being manufactured locally.

Earlier this year, DaimlerChrysler refused to confirm reports that it would be producing the next C-Class range in South Africa, but labour unrest in Germany could improve the chances of the C being manufactured locally.

DaimlerChrysler yesterday threatened to move production away from its Sindelfingen factory if unions did not agree to management's attempts to cut costs by up to R6,2 billion. The employees' union is prepared to accept only a R2 billion cut in personnel costs.

Mercedes-Benz boss Juergen Hubbert said the C-Class's production would be moved to its plants in South Africa and Bremen, North Germany, if the Sindelfingen plant's employees' union would not accept the terms.

In January this year, DCSA said it was confident that the contract to produce the next C-Class would be handed to it. The company was supposed to announce a R1-billion investment in its East London to handle the manufacture of the next C-Class earlier this year.

In March, DCSA denied reports that it would be producing the new C-Class though a spokesman did say that the parent company was happy with the quality and service received from the local manufacturer.