Mercedes gears up powertrain network for EVs from 2024

BERLIN -- Mercedes-Benz laid out plans for an investment of more than $1.06 billion to adapt its global production network for electric powertrain systems - including battery assembly, electric drive units, and axles - from 2024.

Plants in Kamenz and Untertürkheim in Germany as well as Beijing, which already assemble batteries for electric and hybrid models, will assemble batteries for models on the upcoming MMA and MB.EA platforms, with another battery assembly site in Koelleda pending support from regional government, the automaker said in a statement.

Untertürkheim, Beijing and Sebes in Romania will build electric drive units for cars on the new platforms, with Hamburg and Untertürkheim to remain the lead plants for assembling electric axles and components.

"There is no site that is not included," production chief Joerg Burzer said on a press call.

An agreement was reached in June on shifting European car plants towards EVs by management and employee representatives, making Sindelfingen the home for high-end vehicles on the AMG.EA platform, Bremen and Kecskemet in Hungary for core luxury models and Rastatt and Kecskemet for entry-level vehicles.

The automaker has set up its car plants to produce both combustion engine and electric cars on single production lines but assembling batteries and motors on the same line is more complex, Burzer said.

Still, many of the component-making plants will carry on making parts for combustion engine cars for as long as there is demand, as Mercedes works towards all-electric sales by 2030 "where market conditions allow."