In Stuttgart this morning Mercedes-Benz said it continues to realign its global production network* towards electric vehicles as it prepares to go fully electric by the end of the decade. That is caveat “wherever market conditions allow.” Mercedes-Benz is changing its production setup for electric drive systems – batteries**, electric drive units and axles – starting in 2024, following the realigned production setup for electric vehicles based on future vehicle architectures announced earlier this year. (AutoInformed.com: Mercedes-Benz Digital ESG Touts Cutting CO2 Emissions; Mercedes-Benz – New Platforms Electric Only From 2025)
“Plug-in hybrids and fully electric vehicles are expected to account for around half of unit sales by as soon as 2025. Conventional drive units will remain part of the Mercedes-Benz drive portfolio in the medium term. With increasing electrification, demand will shift towards e-mobility components, batteries and electric drive systems.,” Mercedes said.
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The new Mercedes-Benz powertrain production network was achieved following what were likely dicey discussions with German employee representatives. Mercedes says this resulted in agreements to further increase flexibility and efficiency at the various locations, paving the way for securing the future of the plants. In line with the implementation of the Mercedes-Benz Business Plan, the company is investing a mid-single-digit billion-euro amount in its European powertrain production locations. Thus far worker protest or strikes are apparently non-existent.
“The path towards sustainable, all-electric mobility has begun. As the General Works Council, we are committed to shaping this change, which is both a challenge and an opportunity, in a fair and socially just manner. In the realignment of the global production setup with regard to all-electric vehicle architectures, we demanded from the outset: The German locations must play an essential role. In the summer, we were already able to agree on visions of the future for the vehicle plants.
“It was always clear to us that we wanted to achieve this for the powertrain locations as well. Our persistence has paid off. I am pleased that we have created security and clear prospects for our colleagues in the powertrain production network,” said Ergun Lümali, Dep. Chairman of the Supervisory Board and Chairman of the Works Council of Mercedes-Benz Group AG
*The Mercedes-Benz powertrain production network
The Mercedes-Benz powertrain production network consists of 14 locations on three continents, providing drive systems, major assemblies and components for the entire Mercedes-Benz powertrain portfolio. It supplies the Mercedes-Benz body plants around the world. A planned battery recycling plant at the Kuppenheim location is also part of this network. During 2022, Mercedes-Benz has been producing on a CO2-neutral basis in all its own plants worldwide and purchasing electricity that comes exclusively from renewable sources. In addition, the company aims to increase the generation of renewable energy at its locations.
** The new battery factory in Bibb County near the Mercedes-Benz vehicle plant in Tuscaloosa, Alabama (USA), started operations this year. It produces efficient battery systems for the all-electric EQS SUV and EQE SUV, which are already in production starting this year.
Mercedes-Benz Outlines EV Drive Systems Production Sites
In Stuttgart this morning Mercedes-Benz said it continues to realign its global production network* towards electric vehicles as it prepares to go fully electric by the end of the decade. That is caveat “wherever market conditions allow.” Mercedes-Benz is changing its production setup for electric drive systems – batteries**, electric drive units and axles – starting in 2024, following the realigned production setup for electric vehicles based on future vehicle architectures announced earlier this year. (AutoInformed.com: Mercedes-Benz Digital ESG Touts Cutting CO2 Emissions; Mercedes-Benz – New Platforms Electric Only From 2025)
“Plug-in hybrids and fully electric vehicles are expected to account for around half of unit sales by as soon as 2025. Conventional drive units will remain part of the Mercedes-Benz drive portfolio in the medium term. With increasing electrification, demand will shift towards e-mobility components, batteries and electric drive systems.,” Mercedes said.
Click for more information.
The new Mercedes-Benz powertrain production network was achieved following what were likely dicey discussions with German employee representatives. Mercedes says this resulted in agreements to further increase flexibility and efficiency at the various locations, paving the way for securing the future of the plants. In line with the implementation of the Mercedes-Benz Business Plan, the company is investing a mid-single-digit billion-euro amount in its European powertrain production locations. Thus far worker protest or strikes are apparently non-existent.
“The path towards sustainable, all-electric mobility has begun. As the General Works Council, we are committed to shaping this change, which is both a challenge and an opportunity, in a fair and socially just manner. In the realignment of the global production setup with regard to all-electric vehicle architectures, we demanded from the outset: The German locations must play an essential role. In the summer, we were already able to agree on visions of the future for the vehicle plants.
“It was always clear to us that we wanted to achieve this for the powertrain locations as well. Our persistence has paid off. I am pleased that we have created security and clear prospects for our colleagues in the powertrain production network,” said Ergun Lümali, Dep. Chairman of the Supervisory Board and Chairman of the Works Council of Mercedes-Benz Group AG
*The Mercedes-Benz powertrain production network
The Mercedes-Benz powertrain production network consists of 14 locations on three continents, providing drive systems, major assemblies and components for the entire Mercedes-Benz powertrain portfolio. It supplies the Mercedes-Benz body plants around the world. A planned battery recycling plant at the Kuppenheim location is also part of this network. During 2022, Mercedes-Benz has been producing on a CO2-neutral basis in all its own plants worldwide and purchasing electricity that comes exclusively from renewable sources. In addition, the company aims to increase the generation of renewable energy at its locations.
** The new battery factory in Bibb County near the Mercedes-Benz vehicle plant in Tuscaloosa, Alabama (USA), started operations this year. It produces efficient battery systems for the all-electric EQS SUV and EQE SUV, which are already in production starting this year.