Daimler-Chrysler's decision to produce the new generation C-Class Mercedes Benz in Buffalo City will strengthen and help sustain the city's economic growth, the Daily Dispatch reported today.

This was despite the fact that no immediate jobs would be created. Buffalo City was proud to be a part of the R4.5-billion South African motor industry, with a local workforce of 175 000 employed within the industry, said Executive Mayor Sindisile Maclean.

Daimler-Chrysler South Africa last week announced it had secured the deal to produce the next generation C-Class, due for world release in 2006, at the West Bank plant. Last year 43 000 W203 units came off the line at the plant and DCSA is hoping to double this figure for the W204, the newspaper said.

He told the newspaper that winning the bid to manufacturer the car was a massive vote of confidence for the city and a tribute to the West Bank plant's workforce. "It is a thrill to know that DCSA continues to connect our city to the wider world by exporting its cars to western Europe, the US and the Pacific rim," he said.

City Manager Mxolisi Tsika said the city was gearing itself for greater demand for services "because we must always be ready to answer the call if DCSA or other companies need more electricity, water, sanitation, waste removal or any other municipal service".

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