Mercedes plans to invest billions in e-vehicle plants
- ByStartupStory | March 20, 2023
According to Automobilwoche magazine, Mercedes is planning to invest billions of dollars in the modernization of its factories in China, Germany, and Hungary in the next few years. The purpose of this investment is to prepare for the transition to electric vehicles and reduce emissions.
The European Union has established an objective of reducing carbon dioxide emissions per passenger car by 50% throughout their lifespan by the conclusion of this decade in comparison to 2020. Furthermore, the EU is attempting to reach a consensus on setting a deadline for discontinuing the sale of cars powered by fossil fuels by the year 2035.
Mercedes said that if market conditions will permit it will go electric by the end of this decade.
According to the magazine, production manager Joerg Burzer stated that “Mercedes is investing a sum in the hundreds of millions of dollars per plant to prepare for the transition to electric vehicles”. These investments will be made at the plants located in Beijing, Germany’s Rastatt, and Hungary’s Kecskemet.
Starting in the next few months, Mercedes will commence construction at the Rastatt plant and begin manufacturing the initial model of the compact vehicle platform MMA starting in 2024. Production manager Burzer mentioned that the number of models produced at the plant will be reduced from seven to four.
According to the report, the objective of the modernization is to decrease energy and water consumption, as well as reduce the reliance on gas for the painting system by utilising carbon-free energy instead.
Furthermore, Mercedes is contemplating an expansion of its Tuscaloosa plant in the United States, which could qualify for government subsidies under the recently enacted Inflation Reduction Act, according to Automobilwoche.
Burzer stated that Mercedes is prepared to adapt to any additional alterations in the regulatory environment. “The global framework conditions are constantly shifting, and we may need to respond to those changes,” remarked Burzer.
Follow Startup Story
Related Posts
