Next Level Production.

As part of the Mercedes-Benz Business Plan, the company invested more than two billion euros in its European assembly plants. With their manufacturing expertise and consistent digitalization, these locations make a key contribution towards the successful implementation of the global production strategy. Following the successful ramp-up of the electric CLA, the first model based on the Mercedes Modular Architecture (MMA), at the Rastatt plant, the company is now continuing its product launch campaign with models in the Core and Top-End segments.

In parallel with the electric Mercedes-Benz GLC in Bremen and the electric C-Class in Kecskemét, the Sindelfingen plant is preparing for the production of the new electric Mercedes-AMG models, which are already in their testing phase. Bremen and Sindelfingen will continue to act as lead plants for the models in the Core and Top-End segments. With this, Mercedes-Benz reaffirms Germany's key role as an industrial location within the global production strategy.

Production costs will decrease by ten percent between 2024 and 2027. This will be achieved through a number of measures, including greater efficiency in production and logistics thanks to digitalization, as well as the use of artificial intelligence and digital twins and the increased use of renewable energies. In addition, the low-cost country share will be increased from 15 to 30 percent by 2027.

The announced models in the Core and Top-End segments will be gradually industrialized in the global production network. This is made possible through the integration of the plants into the production ecosystem MO360 and via the MO360 Data Platform. In addition, they are consistently aligned with the cloud-based production technologies of MB.OS. The high degree of digitalization and the use of digital twins form the basis for standardized, scalable and, at the same time, flexible production processes throughout the network.

Furthermore, Mercedes-Benz plans the extensive application of humanoid robots in production, specifically in the intralogistics areas, within the cooperation with Apptronik in the coming years. Both the MO360 applications and MB.OS are continuously improved with Artificial Intelligence. This innovative approach enables seamless integration of the new models into existing series production as well as ensuring a stable ramp-up. At the same time, the significant level of flexibility and adaptability make it possible to react quickly and effectively to new geopolitical challenges.

Production plays an important role in Mercedes-Benz's sustainable corporate strategy. One focus is on the energy supply of the network: Since 2022, Mercedes-Benz's own vehicle production sites have been net carbon-neutral,^[1]Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
and by 2030, it is planned to cover more than 70 percent of the energy requirements in production with renewable energies. This will be achieved, among other things, through the expansion of solar and wind energy at our own locations and through the conclusion of corresponding power purchase agreements. The planned projects for an on-shore wind farm in Papenburg¹, northern Germany, and an off-shore wind farm in the Baltic Sea² are progressing well. The necessary official approvals have been granted and the construction of the wind turbines can now begin. The goal for all Mercedes-Benz production facilities worldwide is to operate with 100 percent renewable energies by 2039.

¹ Power Purchase Agreement (PPA) with UKA
² Power Purchase Agreement (PPA) with Iberdrola

The newly structured Core and Top-End segment forms the backbone of the most extensive product offensive in the automotive history of Mercedes-Benz. In the coming three years, more than 40 vehicles will be launched within the global production network. With Next Level Production, Mercedes-Benz signals that the course has been set for the product offensive: intelligent, flexible, efficient, digital, sustainable and resilient. The company has set up the production network to be flexible enabling the production of multiple powertrains on the same production line. The pace of the transformation is determined by market conditions and the wishes of Mercedes-Benz customers.