Mercedes is investing millions of dollars in modernizing its existing electric vehicle manufacturing plants in several countries, including China, Germany, and Hungary. This is an effort of the company in preparation to switch to electric vehicles and achieve net-zero emissions.
(Photo : THOMAS KIENZLE/AFP via Getty Images)
The logo of Mercedes-Benz is seen on a wheel rim of a passenger car at the "Factory 56", a completely digitalized assembly line, at the Mercedes-Benz manufacturing plant in Sindelfingen, southern Germany, on February 13, 2023. Mercedes-Benz will present their 2022 annual results on February 17, 2023.
Investing to Modernize Plants
To prepare for switching to electric vehicles and achieving net-zero emissions, Mercedes Benz will invest a three-digit million per plant in several countries for modernization. Reuters reported that the manufacturing plants would be upgraded over the coming years to cater to the latest electric vehicle productions.
As per Production Manager Joerg Burzer, these investments will be allocated at the Beijing, China, and Rastatt, Germany plants. And Kecskemet, Hungary. The Hungarian plant will start construction over the coming months as it is planned to produce the first model of the compact vehicle platform MMA in 2024.
In addition to these plants, Mercedes also plans to invest a much lower digit billion dollar amount for the modernization of manufacturing plants in Germany, specifically at its Sindelfingen, Bremen, and Rastatt plants. Through this investment, the company will be able to cut energy and water consumption and reduce its reliance on gas.
As for the United States, Financial Post reported that the company is considering expanding its plant in Tuscaloosa for the company to benefit from government subsidies with the Inflation Reduction Act's passing last year.
Switching to Electric
Burzer added, "The framework conditions worldwide change again and again, we may have to react to that." Game News reported that if the market condition favors the company, Mercedes will be ready to switch to electric vehicles by the decade's end.
This is also part of the company's compliance with the European Union's goal to halve CO2 emissions per passenger car over their life cycle by the end of the decade. It seeks the agreement on a 2035 deadline to end gas-emission vehicles.
Also Read: Mercedes-Benz Plans to Install its EV Fast Chargers in the US - In Partnership with ChargePoint?
At the beginning of the second half of 2023, Mercedez Bens said that it would start producing an all-electric version of its Sprinter van both in North America and Europe. This can go you to 248.5 miles or 400 km on highways and 311 miles or 500 km in the city through its 113kWh battery.
The production will take place in Charleston, South Carolina facility later this year and may qualify for the $7,500 electric vehicle tax credit from the government. The van will also be manufactured in the company's German plant in Ludwigsfelde and Düsseldorf.
Per Mercedes-Benz Vans President Mathias Geisen, this van is the most versatile e-Van ever in its lineup and has an advantage over its rivals because of its superior range.
Related Article: Mercedes-Benz Develops Own Operating System to Power its Next Generation Vehicles
