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Mercedes-Benz sorts global E-drive production
The automobile manufacturer Mercedes-Benz is further aligning its global production network towards electric vehicles. The world's most valuable luxury car brand is preparing to become fully electric by the end of the decade – wherever market conditions allow. This summer, the company had already announced the production setup for future vehicle architectures in its factories. Now, the locations for producing electric drive systems - batteries, electric drive units, and axles - from 2024 onwards have also been confirmed. The Mercedes-Benz powertrain production network is thus setting important course for securing the future of its plants.
Agreement with German Works Council
The new production setup is, among other things, the result of constructive talks with the German employee representatives. In this context, measures to further increase flexibility and efficiency at the sites were also agreed upon. As part of the implementation of the Mercedes-Benz Business Plan, the company is investing a mid-single-digit billion euro amount in its European powertrain production locations. The battery factories in Kamenz and Brühl (Untertürkheim location) as well as Beijing (China) will produce batteries for the new models of the MMA and MB.EA platforms. The establishment of a battery assembly plant in Kölleda is also planned, subject to the support of the Thuringian state government. The location currently handles conventional and hybridized engines and is now taking an important step in the electric transformation. The state government has assured the company of corresponding support in a letter of intent.
Untertürkheim to Produce One Million E-Drives
The plants in Untertürkheim, Sebes (Romania), and Beijing will produce electric drive units for the new models of the MMA and MB.EA platforms starting in 2024. In this target scenario, the Untertürkheim plant will double its previously announced production capacity for electric drives to one million units. The plants in Hamburg and Untertürkheim (Mettingen site) will remain the core German plants for the assembly of electric axles and components. They will supply the assembly plants' production network with next-generation systems. As announced last year, the Berlin plant will produce high-performance electric motors for the future AMG.EA platform from the middle of the decade.
Transformation to Electric Only: Combustion Engines Will Continue Mid-Term
The drive production network is undergoing a transformation, according to the manufacturer. By 2025, plug-in hybrids and fully electric vehicles are expected to account for around half of sales. Conventional drive units will thus remain an important part of the drive portfolio in the mid-term. As electrification increases, demand will shift towards e-mobility components, battery systems, and electric drive systems, according to forecasts. The company's sustainable orientation towards an all-electric vehicle lineup necessitates comprehensive adjustments to structures and processes and requires a high degree of flexibility, even within the drive production network. The basis for the transformation will be an extensive qualification and retraining program for employees at the locations. With the launch of the new Mercedes-Benz Drive Systems organizational unit, the company reorganized its drive division back in 2020. By consolidating all group-wide drive competencies in the areas of development, production, procurement, controlling, human resources, planning, logistics, and quality under one roof, the company is consistently aligning its drive division towards CO2-neutral mobility.
The drive production network thus consists of 14 locations on three continents and covers the entire drive portfolio of Mercedes-Benz with drive systems, units, and components. It supplies the worldwide Mercedes-Benz assembly plants. The planned battery recycling factory at the Kuppenheim site is also part of the network. Mercedes-Benz has been producing CO2-neutrally in all its own plants worldwide since this year and sources electricity exclusively from renewable sources. Additionally, the company aims to increase the generation of renewable energy at its locations.
Translated automatically from German.
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