Mercedes says new Beijing plant has potential capacity of 350,000

Daimler AG can expand production capacity at its Beijing plant to 350,000 vehicles a year if customer demand calls for it, Rene Reif, the head of manufacturing at Beijing Benz Automotive, said on Monday.

Daimler is expanding its new plant in Beijing before it starts making its long-wheelbase Mercedes-Benz C-Class model, a new car tailored for the Chinese market, as part of a global expansion push by the premium auto maker.

The Chinese plant, which built 120,000 Mercedes-Benz cars in 2013, currently makes mainly E-Class and C-Class sedans and will soon add the GLA compact sports utility vehicle to its line-up.

By the end of 2014, production capacity in Beijing will be around 140,000 cars, the German executive said in the Chinese capital on Monday.

The China expansion push forms part of a global plan which involves producing the new C-Class in the United States, China and South Africa, following the start of production of the model in Bremen, Germany, this year.

(Editing by David Holmes)