At the core of the investment is the construction of a new production facility in the town of Cheb, located in western Czechia near the German border. The plant will become part of the Mercedes-Benz Trucks European manufacturing network and is expected to handle part of the company’s existing production program from facilities in Germany and Turkey.

Daimler Truck plans to invest a low- to mid-three-digit million-euro amount into the project, highlighting the scale and long-term commitment behind the expansion. The new plant is designed with a production capacity of up to 25,000 trucks per year, positioning it as a key node in the company’s European operations.

The investment is expected to create over 1,000 jobs, spanning manufacturing, IT, quality control, and maintenance roles. This is particularly significant for the Karlovy Vary region, which has historically faced structural economic challenges.

The decision to invest in the Czech Republic is closely linked to Daimler Truck’s broader European strategy. The company is restructuring its production network to improve efficiency, reduce costs, and increase flexibility in response to changing market conditions.  The Czech location offers several advantages such as competitive cost structure compared to Western Europe, proximity to key markets within the EU, strong industrial base and skilled workforce, and well-developed logistics infrastructure. 

The arrival of Daimler Truck further reinforces the Czech Republic’s position as a major automotive hub in Europe. Traditionally dominated by passenger car production, the country is now expanding into the heavy commercial vehicle segment, diversifying its industrial base.

Daimler Truck’s investment in the Czech Republic represents more than just a new factory—it is a strategic move that integrates the country into a global production network while supporting the transition of the automotive industry toward new technologies.

For the Czech Republic, the project brings high-quality jobs, technological advancement, and increased international visibility. For Daimler Truck, it provides a competitive and flexible base to navigate the evolving European and global transport landscape.

Source: Daimler Truck, Reuters