Daimler: Restructuring of the Model Range and Untertürkheim

The fact that Daimler has tangled somewhat with the transition to electromobility is demonstrated by the latest innovations, all of which stand on different platforms. The EQC stands on the modified rear-wheel-drive combustion platform MRA, which is also the basis for the new C-Class. The EQA, on the other hand, is based on the modified combustion front-wheel-drive platform MFA II, while the large electric limousines EQS and EQE will then use EVA, the newly developed purely electric Electric Vehicle Architecture, abbreviated as "EVA."

For future electric cars below the EQE, the Mercedes Modular Architecture (MMA) is being developed, which gives priority to "electric first" but can also carry combustion engines. Below that, a compact electric platform from Geely will be used for Smart, which in turn will also carry a new purely electric entry-level Volvo named XC 20 or XC 30.

Still in the Dark: The Future of the EQC

Which brings us back to the C-Class, for which no purely electric counterpart has been directly announced yet. Therefore, it can be assumed that a vehicle will also be created here on the new MMA, and that a future EQC, which will certainly be available as an SUV and potentially as a space-efficient coupe-limousine similar to the EQE and EQS, will significantly differ from the combustion or plug-in model. Accordingly, the sixth generation of the C-Class could also move to the new MMA front-wheel-drive architecture, which also supports the A- and B-Class, or, similar to BMW, they might consider giving the current combustion C-Class another major facelift to phase it out around 2030.  

The fact is: By 2025, Mercedes-Benz plans to have ten purely electric models in their program. Excluding Smart, this includes EQA, EQB, EQC, EQE, and EQS (including the SUV derivatives) and the Van EQV, making eight models. Additionally, the first MMA model, which is announced for 2024, could be included, plus the Smart SUV on the compact Geely electric platform. This means the ten Mercedes-Benz models would still stand on six (!) platforms. Thus, it is clear where Daimler has great potential for the future!

Untertürkheim Becomes a New Electric Location

Accordingly, they are also restructuring the plants: Untertürkheim will become a technology competence center with a campus that, according to Daimler, "clearly focuses on electric drive and battery technology" - including the production of lithium-ion cells. Thus, the Mercedes-Benz Drive Systems division and the Stuttgart-Untertürkheim plant will be consistently oriented towards "Electric First" in the context of "Ambition 2039" - the company's path to CO2 neutrality. A three-digit million euro amount is planned to be invested in Untertürkheim's transformation. A "Mercedes-Benz Drive Systems Campus" is planned for the future. The largest location in the global powertrain production network will focus on the research, development, and production start-ups of drive systems. The agreement aims to strengthen and reaffirm Untertürkheim's role as a development and qualification hub for drive technologies.

Small-Scale Production of Lithium-Ion Cells

In addition, the location is further expanding its already broad expertise in the field of e-mobility with a campus for electric and electrified drives. A new factory for the small-scale production of future lithium-ion battery cells and a dedicated Battery Safety Lab will complement Mercedes-Benz's existing research and development activities in battery technology.

In series production, Untertürkheim is to increasingly focus on electric drive components - battery and electric drive systems. In contrast, conventional engine, transmission, and component manufacturing is to be gradually phased out, which according to Daimler will also "affect the employment profiles and volumes" - in a negative sense, as fewer people will be needed. This reads concretely as follows: Some personnel will be retrained, but the reduction in conventional drive production volumes at the Untertürkheim site will also lead to "personnel adjustments." The company is preparing for this with various measures. "The highest priority is to make the structural and personnel adjustments regarding the affected jobs as socially acceptable as possible."

By consolidating and expanding its battery activities, Daimler says it is further strengthening its expertise in the field of e-mobility. The site already hosts extensive research and development activities, such as the E-Technikum and the Cell-Technikum, where prototypes of electric drive systems (eATS) are built and cell technologies are researched and tested. In addition, the research and development activities in the field of batteries currently located at the Nabern site, including various test stands, are also to be located on the campus in the future.

Additionally, further investments are planned to expand today's cell technology center in order to cover the entire value chain of battery technology. In addition to basic research, pre-development, and design of battery cells, small-series production of lithium-ion battery cells will also be enabled through a new factory. This factory is expected to be operational in 2023.

Strengthening Battery and Cell Production, But the Latter Only for Building Know-How

The factor of sustainability, a transparent cell development up to recycling, plays a paramount role in this. Mercedes-Benz will comprehensively cover the field of battery technology at the Untertürkheim site in the future - including battery systems manufactured at the site. The battery factory in the Brühl plant section will manufacture batteries for plug-in hybrid vehicles from 2022. Starting this year, battery systems for the Mercedes-EQ model EQS - the fully electric member of the S-Class family - will be produced in the battery factory in the Hedelfingen plant section.

Production of the EQS Starts in Sindelfingen Still in 2021

The EQS will be manufactured from the first half of 2021 in Factory 56 in Sindelfingen, located about 20 kilometers away. The battery system for the EQE will also be produced in Hedelfingen. According to Daimler, the next generation of electric motors will be developed in-house, equipped with inverters and high-voltage technology. The production and assembly of parts of the electric drive system (eATS) for future Mercedes-EQ brand vehicle models will start at the end of 2024, rounding off the product portfolio of the battery factories in Hedelfingen and Brühl. Daimler expects the previously planned production volumes for the electric drive system to double.

What Does This Mean?

Daimler is also making great strides towards electromobility and is restructuring the Untertürkheim plant for this purpose. Along with various plants being restructured in the course of consolidating the e-content in Untertürkheim, platforms also need to be restructured. Mid-term, Daimler's electric makeover will rest on various bases. While, like BMW with CLAR II, they still rely on a multi-drive approach, albeit with "electric first," in the future, only the EQS and EQE will have a purely electric "skateboard" called EVA. However, the broad mass-production base for everything below the EQE is still missing for the Swabians. It is to be hoped that in the medium term, the compact Benz models will not be even more strongly aligned with Geely - and future compact Benz models will share the exact same platform as future Geelys and Volvos. In terms of sheer numbers, this would make sense. However, the restructuring of the Untertürkheim location seems to mitigate this risk, and one can expect another "star skateboard" by 2024.