June 29, 2022 – Mercedes-Benz is aligning its global production network to manufacture its reshaped product portfolio focused on luxury electric vehicles as the world’s most valuable luxury car brand prepares to go all electric by the end of the decade – wherever market conditions allow.
The future product portfolio will focus on three categories: Top End Luxury, Core Luxury and Entry Luxury as outlined in the company’s Economics of Desire event on May 19.
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 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 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 to 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 two billion euros into its European production sites. This step marks a new phase of introducing next-generation electric platforms in production, securing future employment at European locations. The new production plan is the outcome of constructive discussions with German employee representatives, resulting in far-reaching measures to further increase flexibility and efficiency.
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. It’s good news for the company, the locations and most of all, for our employees. As employee representatives we demanded German production sites continue to play a significant role. The introduction of new technologies to our production sites is the key to becoming future proof and to ensuring continued employment. 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.
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.
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. Thanks to early investments into flexible production and the use of the state-of-the-art 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. 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.