New Delhi:German luxury carmaker Mercedes-Benz is aligning its global production network to manufacture its reshaped product portfolio focused on luxury electric vehicles. The world’s most valuable luxury car brand is preparing to go all-electric by the end of the decade – wherever market conditions allow. According to the carmaker, the future product portfolio will focus on three luxury categories: Top-End Luxury, Core Luxury and Entry Luxury.
The Mercedes-Benz plants in Sindelfingen, Bremen, Rastatt and Kecskemét will start production of new models in the Top End Luxury, Core Luxury and Entry Luxury segments from the middle of the decade, the company said in a statement.
Jörg Burzer, Member of the Board of Management, Mercedes-Benz Group AG, Production and Supply Chain, said, “Following the successful launches of Mercedes-EQ models in recent months, we are taking the next step: To outline the plan for our future production setup. Together with the employee representatives, we are consistently implementing the Mercedes-Benz strategy towards ‘electric only’. The global Mercedes Benz production network is sustainable, digital and flexible. We are ready for the rapid scaling of electric vehicle volumes – not least thanks to our highly qualified and motivated team worldwide. With the new production setup, we are further increasing our flexibility and efficiency and securing the future of our locations.”
The Mercedes-Benz Sindelfingen site is the lead plant for the Top End Luxury segment and will produce models based on the electric AMG.EA platform from 2025. The Mercedes-Benz plants in Bremen, Germany and Kecskemét, Hungary will manufacture vehicles in Europe based on the electric MB.EA platform. Rastatt and Kecskemét will also produce the repositioned models based on the MMA platform from 2024 onwards.
As part of implementing the Mercedes-Benz 2022-2026 Business Plan, the company is investing more than EUR 2 billion into its European production sites.
Ergun Lümali, Dep. Chairman of the Supervisory Board and Chairman of the Works Council, Mercedes-Benz Group AG, said, “It is our job to ensure that the shift towards ‘electric only’ is fair. With today’s decision on the production setup, we are ensuring that this remains the case.”
“With investments into the new production setup, we have ensured that vehicles with new electric architectures are built at our locations, helping to secure production capacity. This gives our colleagues, who have for decades worked for the three-pointed star, security and a new opportunity. We demand that the same should happen for our Powertrain locations. The works council will continue to work towards this goal.” he added.
The production portfolio already includes six all-electric Mercedes-EQ models. These roll off the production line at six locations on three continents and have been consistently integrated into ongoing series production–with early investments into flexible production and the use of the MO360 digital production system, Mercedes-Benz is already able to produce battery-electric vehicles in large volumes.
The batteries for the Mercedes-EQ electric vehicles are supplied by the global battery production network with factories on three continents. Local battery production is a key success factor for Mercedes-Benz’s electric offensive. The automaker has also been producing CO2-neutral in all of its own plants worldwide since this year and has also been purchasing electricity in Germany that comes exclusively from renewable sources (CO2-free) since this year.
The most important levers for this are the electrification of the vehicle fleet, charging with green electricity, the improvement of battery technology and the comprehensive use of recycled materials including batteries and renewable energies in production.
Mercedes-Benz has been producing CO2-neutral in all of its own plants worldwide since this year and has also been purchasing electricity in Germany that comes exclusively from renewable sources (CO2-free) since this year.
A green electricity supply contract ensures the purchase of electricity from renewable energies at all times. In addition, the company aims to increase the production of renewable energy at its sites.
Solar plants with a capacity of more than 11 MWp are to go into operation by the end of next year, it added. By 2025, Mercedes-Benz will invest a three-digit million sum in the installation of photovoltaic systems. Mercedes-Benz is also planning to invest in new power purchase agreements for wind turbines worth 1 billion euros by the middle of the decade.
By 2030, it is planned to cover more than 70% of the energy demand in production from renewable energy sources – 15% is to be generated by renewable energy at the company’s own locations. This is to be achieved by expanding solar and wind energy at its own locations and by concluding further corresponding power purchase agreements. Mercedes-Benz is also pursuing the goal of reducing water consumption by 35% by 2030.
In the next step, Mercedes-Benz also wants to make logistics CO2-neutral. The rail transport of vehicles and components such as batteries play an important role here.