Mercedes invests two billion euros in E-conversion of assembly plants

Mercedes invests two billion euros in E-conversion of assembly plants

Mercedes-Benz has announced billions of euros of investment in its European assembly plants to equip them for the shift to electric cars by the end of the decade, with production of vehicles on the new electric platforms due to be introduced from 2025.

The German plants in Sindelfingen, Bremen, Rastatt and the plant in Kecskemét, Hungary, will start production of the new electric models in the "Top End Luxury", "Core Luxury" and "Entry Luxury" segments from the middle of the decade, according to Mercedes. The carmaker had already announced in July 2021 that Mercedes intends to introduce only electric platforms from 2025 - now the (expected) distribution among the plants has also been determined.

The Sindelfingen plant is the lead plant for "Top End Luxury" and will produce models of the electric platform AMG.EA from 2025. The Bremen and Kecskemét plants will produce models of the e-platform MB.EA - i.e. the "Core Luxury" models - and the Rastatt and Kecskemét plants will build the repositioned models platform MMA from 2024.

In the case of the latter platform, the keyword "repositioned" is important: Mercedes boss Ola Källenius has been planning for some time to thin out the Stuttgart company's compact model range. According to a report in the Handelsblatt, the GLA, GLB, CLA Coupé and CLA Shooting Brake models are to be given an electric successor. It had become apparent that the B-Class was to be discontinued, but the A-Class is also to be dropped in all body styles.

As part of the implementation of the 2022-2026 business plan, Mercedes-Benz says it is investing more than two billion euros in its European production sites. The automaker is also increasing the depth of manufacturing and development in the area of electric drive technology, as previously leaked. The next generation of electric drive systems will be developed in-house.

The production and assembly of parts of the e-drive systems for future models of the Mercedes-EQ brand will begin at the Untertürkheim plant at the end of 2024. As reported, the Berlin plant will also expand its production portfolio in the future to include the manufacture and assembly of high-performance electric motors from the acquired British specialist Yasa.