According to Automobilwoche, Mercedes plans to invest billions of dollars in modernizing its factories in China, Germany, and Hungary over the next few years to prepare for the transition to electric vehicles.
It is understood that the EU has set a target to reduce the carbon dioxide emissions of each passenger car during its lifecycle by half compared to 2020 by the end of this century and is seeking to reach an agreement on the final deadline to stop selling fossil fuel cars by 2035.
Mercedes said that it will be ready to achieve electrification by the end of this decade, subject to market conditions.
“We are investing hundreds of millions of euros in each plant to prepare, and these investments will be used for the Beijing, Rastatt in Germany, and Kecskemet in Hungary factories,” said Mercedes production manager Joerg Burzer.
The automaker will start work on the Rastatt plant in the coming months and will produce the first model of the compact car platform MMA from 2024.
In addition, Mercedes will invest hundreds of millions of dollars to modernize the painting systems at its Sindelfingen, Bremen, and Rastatt plants in Germany. The modernization aims to reduce energy and water consumption and the painting system’s reliance on natural gas.
Mercedes is also considering expanding its US factory in Tuscaloosa, where it can benefit from government subsidies under last year’s Inflation Reduction Act.
