Mercedes invests €1bn to realign network for EV production
Mercedes is investing over €1bn (£859m) to realign its global network for the production of electric vehicles (EV) from 2024.
The German car maker has pledged to become fully electric by 2030 “wherever market conditions allow.”
As part of the realignment, plants in Germany and China will continue to assemble batteries for models coming into Mercedes’s new EV platforms MMA and MB.EA.
The two platforms – which will be launched respectively in 2024 and 2025 – are the core structure on which models are built. They are usually shared between a variety of models.
The marque’s factories will also focus on the production of electric drive units – the actual motors that make each electric vehicle move.
As part of the push, Mercedes’s plant in Untertuerkheim, Germany will double its electric drive unit capacity to produce one million units.
“The path towards sustainable, all-electric mobility has begun,” said Ergun Lumali, deputy chairman of Mercedes’s supervisory board.
“We are committed to shaping this change, which is both a challenge and an opportunity, in a fair and socially just manner. “
Nevertheless, most of the car maker’s factories will continue to assemble internal parts for diesel and oil vehicles.
The announcement comes a day after Mercedes was forced to put on hold its joint venture with electric van maker Rivian.
Rivian announced yesterday it was pressing pause on building electric vans with Mercedes as it wanted to focus on its North American consumer and commercial businesses.
“We share the same goal as Mercedes-Benz Vans, to help the world transition to electric vehicles, and we look forward to exploring opportunities with them at a more appropriate time for Rivian,” said Rivian’s chief executive RJ Scaringe.