Mercedes-Benz and Unions Agree on EV Production Plans

Mercedes-Benz said in Stuttgart today that it has reached agreement with “employee representatives”  on future European production plans for  its new electric portfolio. This means that the Works Council and the powerful IG Metall union, which represents the industrial sector in Europe’s largest economy, supports how the factories are being allocated. The production portfolio already includes six all-electric Mercedes-EQ models. These are being built at six locations on three continents.

“The shift toward an electric and digital future is a big challenge and at the same time an opportunity. What is clear is that our production portfolio is undergoing a transformation, and with it our tasks and employment profiles. Today we have once again shown that we, together with the works council, have reached viable and forward-looking solutions for our production sites, our company and its employees. I am delighted that we are able to offer our colleagues new opportunities in future,” said Sabine Kohleisen, Member of the Board of Management of Mercedes-Benz Group AG, Human Resources and Labor Director.

The Plan

• Top End Luxury: Sindelfingen, the lead Mercedes-Benz plant for high end vehicles to produce models based on the AMG.EA platform (AMG Electric Architecture) from 2025.
• Core Luxury: The Mercedes-Benz plants in Bremen, Germany and Kecskemét, Hungary to manufacture vehicles in Europe based on the MB.EA platform (Mercedes-Benz Electric Architecture).
• Entry Luxury: The Mercedes-Benz plants in Rastatt and Kecskemét to produce the re-positioned models of the MMA platform (Mercedes Modular Architecture) from 2024 in Europe
• Efficient battery systems to be supplied by the global Mercedes-Benz battery production network.

The Details

Sindelfingen
Production of the all-electric EQS luxury sedan started last year at Factory 56 at the Mercedes-Benz plant in Sindelfingen. In Factory 56, the S-Class, the Mercedes-Maybach S-Class and the EQS are produced on the same line. The Sindelfingen plant is also responsible for the production of the Mercedes-Benz E-Class with Sedan, Estate (station wagon) and All-Terrain off-road variants, CLS as well as the Mercedes-AMG GT family. It will soon be adding the GLC to its portfolio. Sindelfingen is the lead plant in the Top End Luxury segment and will produce models based on the AMG.EA platform from 2025.

Bremen
The Mercedes-Benz plant in Bremen started production of the all-electric EQE a few months ago. In May 2019, the EQC (combined power consumption: 21.5 kWh/100 km; CO₂ emissions combined: 0 g/km)[1] was integrated into ongoing series production at the Mercedes-Benz plant in northern Germany. In addition to the two all-electric models, the C-Class with Sedan, Estate, Coupe and Cabriolet, the E-Class with Coupe and Cabriolet, the GLC as well as the GLC Coupe and the AMG SL come off the production line in Bremen. From the middle of the decade, a model based on the MB.EA platform will be integrated into production.

Rastatt
The Mercedes-Benz Rastatt plant has been producing the all-electric EQA compact model since 2021. The plant is also responsible for the production of the compact vehicles A-Class, B-Class and GLA with combustion engine and plug-in hybrid. From 2024, new models based on the MMA platform are to roll off the production line at the plant. In the Entry Luxury segment, Mercedes-Benz will reduce the number of model variants from seven to four while significantly elevating the technological substance of these products. These changes help to reposition Mercedes-Benz in this segment to meet the wishes of discerning customers.

Kecskemét
The EQB compact SUV was launched at the Mercedes-Benz Kecskemét plant in 2021 and is the first purely electrically powered series production vehicle from Hungary. The model complements the portfolio consisting of CLA Coupe and CLA Shooting Brake as well as the A-Class with its conventional, plug-in hybrid and AMG versions. From 2024, new models based on the MMA platform as well as a model based on the MB.EA platform in Kecskemét roll off the production line.

Beijing
Beijing Benz Automotive Co. Ltd. (BBAC) has been producing Mercedes-Benz vehicles locally for the Chinese market since 2005. A few weeks ago, production of the all-electric EQE business sedan started at the Shunyi plant. The Mercedes-EQ production portfolio of the joint venture consists of four models: Production of the EQC started in 2019. Since 2021, the EQA and EQB have been produced locally. The C-Class (long version), E-Class (long version), A-Class (long version), GLA, GLB, GLC (long version) and the AMG A 35 L are also produced locally within the joint venture.

Tuscaloosa
The Mercedes-Benz plant in Tuscaloosa, AL, USA, will soon start production of the EQS SUV, with the EQE SUV to follow later this year. Both models are produced on the same line together with the SUVs with conventional drive. The GLE, GLE Coupe, GLS and Mercedes-Maybach GLS roll off the assembly line in Tuscaloosa today.

Global Battery Production Network

The batteries for the Mercedes-EQ electric vehicles are supplied by a global battery production network comprising factories on three continents. The local production of battery systems is said to be a key success factor for the Mercedes-Benz electric ramp-up and a decisive component in being able to meet the global demand for electric vehicles flexibly and efficiently.

Accumotive has been producing battery systems for hybrids and electric vehicles in Kamenz, Germany, since 2012. A second battery factory at the site commenced operations in 2018 and has been producing the battery systems for the EQC since 2019 followed by the batteries for the compact electric SUVs in 2021. Since Accumotive began production, more than one million batteries based on lithium-ion technology have been produced at the Kamenz site.

Beijing Benz Automotive Co. Ltd. (BBAC) has established a local battery production facility at the existing site in the Yizhuang Industrial Park in Beijing, China. It supplies the vehicle plants, which produce for the local market. Production of battery systems for the EQC started there in 2019. Production of battery systems for the EQE started this year.

Also in 2019, Mercedes-Benz opened a battery production plant in Bangkok, Thailand, together with its local partner Thonburi Automotive Assembly Plant (TAAP). Battery systems for plug-in hybrids and all-electric vehicles are manufactured there.

The Mercedes-Benz battery factory in Jawor, Poland, has been producing plug-in hybrid batteries for the C-, E- and S-Class since 2020. In 2021, the site expanded its portfolio to include battery systems for the compact Mercedes EQA and EQB models.

Two factories as parts of the Untertürkheim site in Stuttgart, Germany, produce battery systems. The Hedelfingen plant has been producing batteries for the EQS and EQE since 2021. A few weeks ago, the production of plug-in hybrid batteries started in the Brühl plant, which will be used in the new GLC, among other things.

The new battery factory in Bibb County near the Mercedes-Benz vehicle plant in Tuscaloosa, Alabama (USA) started operations this year, producing highly efficient battery systems for the all-electric EQS SUV and EQE SUV later this year.

The Mercedes-Benz battery production network will also be supplemented by another battery factory at the Sindelfingen site.

Electric Drive Systems In The Global Production Network

Mercedes-Benz will deepen the level of vertical integration in manufacturing and development, and insource electric drive technology. The next generation of electric drive systems are being developed in house. The manufacturing and assembly of parts of the electric drive systems for future models of the Mercedes-EQ brand will start at the end of 2024 at the Untertürkheim plant.

Another step is the acquisition of UK-based electric motor company YASA. With this deal, Mercedes-Benz gains access to unique axial flux motor technology and expertise to develop next generation ultra-high-performance motors. The Mercedes-Benz Berlin plant will expand its production portfolio with the manufacture and assembly of these ultra-high-performance axial flow electric motors in the future.

[1] Electric energy consumption and range have been determined on the basis of Regulation (EC) No. 692/2008. Electric energy consumption and range depend on the vehicle configuration.