Smartville, Hambach, France

Last updated
Smart "fortwo" special purpose vehicle "Follow me" Smart fortwo.jpg
Smart "fortwo" special purpose vehicle "Follow me"

Smartville is a purpose-built factory complex in Hambach, France, established in 1994 as a joint venture of Daimler-Benz and the Swiss watch manufacturer Swatch to produce the Smart car. In 2020 the plant was 100% owned by Daimler AG (at that point comprising both the Mercedes-Benz and Daimler Truck companies) [1] [2] and was taken over by Ineos [3] for production of the Ineos Grenadier 4x4. [4]

Contents

The "Smartville" production site in Hambach (France) with its 2,000 workers was among the most modern automobile production plants. It had been built for 450 million Euros and started production in 1998. In order to achieve optimized production processes the plant is arranged in the shape of a cross; in each of its four extensions different assembly works are provided. The centre, the so-called market place, serves as a test room for completed vehicles and for refinishing operations. The centre is multi-storied; thereby all the administrative, IT and changing rooms could be implemented in one central place.

Approximately 1,300 jobs would be safeguarded following the purchase by Ineos. [5] [4]

Smart

The factory was officially opened in 1997 in the presence of Jacques Chirac and Helmut Kohl. [6]

The decision to locate the plant in French Hambach rather than the Black Forest site in Lahr (which had also been seriously evaluated) was made for several reasons. Lorraine and the region around Hambach were shaped by the heavy industry in former times. With the decay of this economic branch a considerable proportion of the population became unemployed. From the EU funds for economically underdeveloped regions as well as from the French government appropriations for an industry settling were available that would not have been provided in Lahr. The high unemployment provided the advantage of a high labor potential for a substantial new manufacturing plant. The Hambach site was closer to the Autoroute than the Lahr site would have been, though both sites are well served by Autobahn connections. Finally pivotal were the vast area reserve and the lower wage level in Lorraine. Calculations resulted in 75 Euros lower production costs for one Smart at the French production site than on the German site. Modern Toyota-inspired production philosophy also necessitated a large surrounding land area so that key suppliers could have their own assembly or warehousing facilities on the same site as the Smart plant.

Smart is the company with the lowest in-house production depth in the automobile sector. It accounts only for 10%, most other manufacturers often still have 20–40%. This means that 90% of the production steps to the complete car are performed by component suppliers.

To bring this concept to perfection, most of the suppliers were settled with their own production sites around the "Smart" plant in Hambach. The auto body manufacturer Magna International produces the chassis from parts that are delivered from the Daimler plant in Sindelfingen. Siemens VDO produces the entire cockpit, the cable trees and the batteries. ThyssenKrupp Automotive delivers the entire propulsion unit. The tire sets are delivered by Continental. The delivery of entire modules is also called Modular Sourcing. The buildings for the component suppliers were built and provided by the company Smart in order to facilitate plant construction for component suppliers at the location.

The Smart-assembly is implemented without any stock-keeping, all parts are delivered just-in-time and even just-in-sequence; this means that all component suppliers have access to the individual order data of every vehicle and that they deliver the parts in exactly the order as is required in the Smart-plant. Since Smart produces vehicles only on order, the completed vehicles, too are stored for few days only before they are delivered into the particular smart-Centers via a company-owned railway station. After the vehicles have been completed their proper operation is verified in several tests, for example an engine test, a gasket test, and on a shake test track. Possible problems during production are solved by 50 employed maintenance specialists. The closeness of component suppliers allows for the maintenance of delivered parts by the particular outside companies.

Work is done in two shifts in which one vehicle has a throughput time of 8 ½ hours; the final assembly takes 4 ½ hours. The production capacity is at about 750 units per day. To keep the motivation of the workers on a high level eight of them at a time are organized in teams. These teams have a relatively flat hierarchy. Every week the production is halted for a quarter of an hour to allow the teams for a reflection. Furthermore, through the participation system "Eureka", all personnel have the opportunity to turn in suggestions for improvement concerning the production flow or of common nature. The best ideas are awarded with a bonus. Even the tidiness of the particular sections of the individual teams is recorded and awarded.

Ineos

Ineos Grenadier 3.0 2021 Ineos Grenadier 3.0 Rear.jpg
Ineos Grenadier 3.0

In July 2020, the Daimler AG has announced its interest to sell the factory. [7]

On 8 December 2020, Ineos [8] announced they had purchased the plant from Daimler in-order to build their new off-road vehicle, the Ineos Grenadier. [9] [10] This replaced plans to establish two completely new car plants in Bridgend and Estarreja with Ineos saying the business case for the already established Hambach plant was 'overwhelming'. Ineos will continue to produce some models from the Smart range on a contract basis. [11]

Related Research Articles

<span class="mw-page-title-main">Mercedes-Benz Group</span> German multinational automotive company

The Mercedes-Benz Group AG is a German multinational automotive corporation headquartered in Stuttgart, Baden-Württemberg, Germany. It is one of the world's leading car manufacturers. Daimler-Benz was formed with the merger of Benz & Cie., the world's oldest car company, and Daimler Motoren Gesellschaft in 1926. The company was renamed DaimlerChrysler upon the acquisition of American automobile manufacturer Chrysler Corporation in 1998, and was again renamed Daimler AG upon divestment of Chrysler in 2007. In 2021, Daimler AG was the second-largest German automaker and the sixth-largest worldwide by production. In February 2022, Daimler was renamed Mercedes-Benz Group as part of a transaction that spun-off its commercial vehicle segment as an independent company, Daimler Truck.

<span class="mw-page-title-main">Magna International</span> Canadian automotive supplier

Magna International Inc. is a Canadian parts manufacturer for automakers. It is one of the largest companies in Canada and was recognized on the 2020 Forbes Global 2000. The company is the largest automobile parts manufacturer in North America by sales of original equipment parts; it has ranked consistently in the Fortune Global 500 list for 20 years in a row since 2001. It produces automotive systems, assemblies, modules, and components, which are supplied to General Motors, Ford and Stellantis, as well as BMW, Mercedes, Volkswagen, Toyota, Tesla, and Tata Motors, among others.

<span class="mw-page-title-main">Magna Steyr</span> Automobile manufacturer

Magna Steyr GmbH & Co KG is an automobile manufacturer based in Graz, Austria, where its primary manufacturing plant is also located. It is a subsidiary of Canadian-based Magna International and was previously part of the Steyr-Daimler-Puch conglomerate.

<span class="mw-page-title-main">Daimler Motoren Gesellschaft</span> Defunct German manufacturer

Daimler-Motoren-Gesellschaft was a German engineering company and later automobile manufacturer, in operation from 1890 until 1926. Founded by Gottlieb Daimler (1834–1900) and Wilhelm Maybach (1846–1929), it was based first in Cannstatt. Daimler died in 1900, and their business moved in 1903 to Stuttgart-Untertürkheim after the original factory was destroyed by fire, and again to Berlin in 1922. Other factories were located in Marienfelde and Sindelfingen.

Mercedes-Benz Mexico S. de R.L. de C.V. is a subsidiary of the Mercedes-Benz Group, headquartered in Mexico City.

<span class="mw-page-title-main">Smart Fortwo</span> Motor vehicle

The Smart Fortwo is a two-seater city car built by the Smart division of the Mercedes-Benz Group from 1998 to 2024. In its third generation, the Fortwo has a rear-engine, rear-wheel-drive layout and a one-box design.

<span class="mw-page-title-main">Smart Forfour</span> Motor vehicle

The Smart Forfour is a city car (A-segment) marketed by Smart over two generations. The first generation was marketed in Europe from 2004 to 2006 with a front-engine configuration, sharing its platform with the Mitsubishi Colt. The second generation was marketed in Europe from 2014 after an eight-year hiatus, using rear-engine or rear electric motor configurations. It is based on the third-generation Renault Twingo, which also forms a basis for the third-generation Smart Fortwo. A battery electric version was marketed as the EQ Forfour beginning in 2018.

<span class="mw-page-title-main">Valmet Automotive</span> Finnish automotive company

Valmet Automotive is a Finnish vehicle contract manufacturer and supplier of battery, roof, and kinematic systems.

<span class="mw-page-title-main">Dräxlmaier Group</span> German automotive company

The Dräxlmaier Group is a globally operating automotive supplier with its headquarters in the Lower Bavarian city of Vilsbiburg, Germany. Founded in 1958, the family-owned company specializes in the production of wiring harness systems, central electrical and electronic components, interiors, and low- and high-voltage battery systems for electric mobility for premium vehicles.

Mercedes-Benz, commonly referred to as Mercedes and sometimes as Benz, is a German luxury and commercial vehicle automotive brand established in 1926. Mercedes-Benz AG is headquartered in Stuttgart, Baden-Württemberg, Germany. Mercedes-Benz AG produces consumer luxury vehicles and light commercial vehicles badged as Mercedes-Benz. From November 2019 onwards, Mercedes-Benz-badged heavy commercial vehicles are managed by Daimler Truck, a former part of the Mercedes-Benz Group turned into an independent company in late 2021. In 2018, Mercedes-Benz was the largest brand of premium vehicles in the world, having sold 2.31 million passenger cars.

TACO Faurecia Design Center Pvt. Ltd. (TFDC) was an Indo French engineering design company. It was a 50:50 joint venture between Tata AutoComp Systems Limited (TACO) of India and Faurecia Automotive Holdings of France. It provided automotive components design services exclusively to Faurecia.

Andreas Renschler is a German engineering manager. He is the former Chief Executive Officer of TRATON SE and member of the Board of Management of Volkswagen AG. Furthermore he is chairman of the Latin America Committee of German Business.

<span class="mw-page-title-main">Automotive industry in Germany</span> Overview of the automotive industry in Germany

The automotive industry in Germany is one of the largest employers in the world, with a labor force of over 857,336 (2016) working in the industry.

Smart is a German automotive marque. Smart Automobile Co., Ltd. is a joint venture established by Mercedes-Benz AG and Zhejiang Geely Holding Group in 2019 and aimed at producing Smart-badged cars in China to be marketed globally. The venture is headquartered in Ningbo. It produces small battery electric vehicles in their manufacturing plant in China, while previously the marque was known to produce microcars and subcompacts, primarily the Fortwo and Forfour, at Smartville in Hambach, Moselle, France and in the Revoz plant. Its distribution, marketing and aftersales activities in Europe are currently handled by smart Europe GmbH which is headquartered in Stuttgart, Germany.

HICOM Automotive Manufacturers (Malaysia) Sdn. Bhd. (HA) is part of the DRB-HICOM Bhd. company for production and assembly of automobiles. The company's headquarters is located in Pekan, Malaysia. Previously, the company was also known as Automotive Manufacturers (Malaysia) Sdn. Bhd.

South Africa is traditionally the leader in Africa of the automotive industry and now produces more than half a million automobiles annually of all types. While domestic development of trucks and military vehicles exists, cars built under license of foreign brands are the mainstay.

<span class="mw-page-title-main">Automotive industry in Vietnam</span>

The automotive industry in Vietnam is a fast-growing sector mainly reliant on domestic sales. All currently produced models are designed abroad by foreign brands, and many rely on knock-down kit production. Due to high import taxes on automobiles, the Vietnamese government protects domestic manufacturing. Although Vietnam is a member of the ASEAN Free Trade Area, automobile imports fall under an exception. Since January 1, 2018, the 30% import tax has been discontinued as part of ASEAN agreements. Currently, the Vietnamese motor industry is not deemed competitive enough to make exports feasible. As of April 2018, 85% of car sales in Vietnam were produced domestically from knock-down kits.

<span class="mw-page-title-main">Ineos Grenadier</span> Motor vehicle

The Ineos Grenadier is an off-road utility vehicle designed and produced by Ineos Automotive Ltd. It went into production in October 2022. The Grenadier was designed to be a modern replacement of the original Land Rover Defender, with boxy bodywork, a steel ladder chassis, beam axles with long-travel progressive-rate coil spring suspension, and powered by BMW six-cylinder internal combustion engines.

<span class="mw-page-title-main">Mercedes-Benz EQB</span> Motor vehicle

The Mercedes-Benz EQB (X243) is a seven-seat battery electric compact luxury crossover SUV produced by the German automobile manufacturer Mercedes-Benz from 2021.

Cooperation Manufacturing Plant Aguascalientes (COMPAS) is a joint venture manufacturing plant between Mercedes-Benz Group and Nissan based in Aguascalientes, Mexico. The factory was announced in July 2015 as a strategic alliance between the two companies. Both companies invested a total of $1 billion for construction and operation of the manufacturing plant. The production site is located near the Nissan Aguascalientes A2 plant.

References

  1. "Daimler completes Mercedes-Benz rename after truck split".
  2. "Daimler To Split Into Two Companies, Luxury Carmaker Mercedes-Benz Group And Daimler Trucks". Carscoops. 2021-10-01. Retrieved 2022-08-12.
  3. "Ineos Grenadier".
  4. 1 2 Neate, Rupert (2020-12-07). "Ineos boss opts to build 'British' heir to Land Rover Defender in France". Guardian. Retrieved 2020-12-07. Jim Ratcliffe … build … successor to the Land Rover Defender 4x4 in France … the Ineos Grenadier vehicle will be built at a former Mercedes-Benz factory in Hambach, close to the French-German border. The deal will "safeguard" 1,300 jobs at the factory
  5. "INEOS Grenadier".
  6. Michel Holtz et Hervé Nathan (27 October 1997). "Chirac et Kohl, VRP de la smart à Hambach. Au jour de l'inauguration de l'usine mosellane, la stratégie commerciale reste à définir" (in French). Libération.
  7. FAZ.net
  8. "Home". ineos.com.
  9. "Home | Ineos Automotive". 20 December 2022.
  10. "Ineos partners with Magna Steyr on Grenadier".
  11. Ineos (7 December 2020). "Ineos AUTOMOTIVE CONFIRMS ACQUISITION OF HAMBACH PRODUCTION SITE FROM MERCEDES-BENZ". Ineos Website. Retrieved 8 December 2020.

Further reading

49°02′58″N7°02′31″E / 49.04944°N 7.04194°E / 49.04944; 7.04194