Wales Selected as Preferred Location for Production of Smart Cars

NEW YORK, July 19 -- Wales has been chosen by Project Kimber, a consortium of international auto executives, as the preferred location for a new assembly plant for the production of its re-branded and re-engineered versions of DaimlerChrysler's smart roadster and coupe sports cars.

The decision, which ends months of speculation, was made by Project Kimber in consultation with its prospective investors and with support from the Welsh Assembly Government's International Business Wales team. Project Kimber is now looking at a number of suitable sites in South Wales.

Today's announcement follows a detailed study by Project Kimber into a number of locations, including sites in the UK's West Midlands and in the German States of Saxony and Thueringen.

A series of meetings between Project Kimber, smart GmbH and its parent company, DaimlerChrysler, are under way to provide firm contracts to replace the Memorandum of Understanding signed in February.

Discussions with potential investors in the UK and North America are at an advanced stage. If these talks proceed according to plan, production is expected to commence around mid-2007 with an initial first twelve months' volume of 8,000 units.

A combination of factors made Wales the preferred location, including the strength and flexibility of the automotive component supply chain, the relevance of the location to the 'British-ness' of the re-branded and re- engineered sports cars, the level of expertise and R&D capability within Welsh University Centres of Excellence, the availability of a skilled workforce, a significant conditional offer of grant aid, and the support of the Welsh Assembly Government and the Wales Automotive Forum.

The International Business Wales team has worked with Project Kimber to ensure that the full advantages of locating in Wales would be realized. Wales has a mature infrastructure that supports the development and manufacture of niche vehicles -- typically, low-to-medium volume, specialist vehicles.

Garel Rhys, Director of the Centre for Automotive Industry Research at Cardiff University, described the decision as significant not just for Wales, but for the UK as a whole.

"It demonstrates that the UK and Wales are still good and efficient locations for the motor industry," he said. "This is a well-founded investment based upon a proven product originally developed and made by one of the world's foremost automotive companies."