While reports on Wednesday stated that DaimlerChrysler's East London plant had been awarded the contract to manufacture the next generation C-Class, these reports have again been denied.

While reports on Wednesday stated that DaimlerChrysler's East London plant had been awarded the contract to manufacture the next generation C-Class, these reports have again been denied.

Wednesday's reports stated that the company's South African division had received notification of the contract, but could not supply further details. There had been earlier claims as well that DCSA had received approval to produce the new C-Class.

CARtoday.com reported recently that DCSA's parent company had yet to decide whether to produce the new C-Class at its East London plant when the current model reached the end of its production. Earlier 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 this year too.

Recent labour unrest at DaimlerChrysler's Sindelfingen plant in Germany prompted the company to threaten to move production of the next C-Class to its plants in Bremen, Germany, and East London, South Africa.