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Mercedes to invest billions of dollars in electric car plants

Mercedes will invest billions of dollars to modernize its factories in China, Germany and Hungary over the next few years to prepare for the transition to electric vehicles, Automobilwoche reported.

Image source Pexels

The European Union has set a goal to cut carbon dioxide emissions per passenger car over its lifetime by half by the end of the century compared to 2020 and is seeking an agreement on a 2035 deadline to stop selling fossil-fueled vehicles.

Mercedes says it will be ready to go electric by the end of this decade, market conditions permitting.

Mercedes production manager Joerg Burzer said, “We are investing hundreds of millions of dollars in preparation for each plant, which will go to Beijing, Rastatt in Germany and the Kecskemet plant in Hungary.”

The automaker will start work on the Rastatt plant in the coming months and will begin production of the first model of the compact car platform MMA in 2024.

In addition, Mercedes will invest hundreds of millions of dollars to modernize the paint systems at its plants in Sindelfingen, Bremen and Rastatt, Germany. The modernization aims to reduce energy and water consumption, as well as the painting system’s reliance on natural gas.

Mercedes is also considering expanding its U.S. plant in Tuscaloosa, where it can take advantage of government subsidies from last year’s Inflation Reduction Act.

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Stephen Cruise
Stephen Cruisehttps://www.techgoing.com
Stephen Cruise is a senior editor covering latest smartphones, EVs, PC gaming, console, and tech with 11 years of experience.

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