Mercedes-Benz realigning global powertrain network for EV rollout

With Mercedes-Benz planning to go fully electric by the end of the decade, the German luxury automaker says it’s realigning its powertrain production network to ease the transition from 2024.

Mercedes-Benz will become an electric-only brand where market conditions allow by 2030, with all new vehicle platforms designed for the electric era.

At the end of June, Mercedes announced it was ready for the “rapid scaling of electric vehicle volumes” as it began preparing its production network for transitioning to luxury EVs.

Mercedes began delivering its flagship EQS sedan last year, followed up with the EQE and EQB. With the EQS and EQE SUVs that debuted in October, drivers can choose a fully electric luxury vehicle in every category.

Following the successful launch of the EQ series, Mercedes is taking the next steps toward achieving its goal of an EV-only future.

For Mercedes-Benz to transition its entire portfolio to fully electric by 2030, it will also need to adapt its supply chain. The automaker revealed new plans to retool its global production network for electric powertrains.

Mercedes-Benz powertrain production network Source MB

Mercedes retools powertrain production for electric vehicles

In a press release Wednesday, Mercedes-Benz says it continues to build out its supply chain network to prepare for a fully electric future.

Jörg Burzer, Member of the Board of Management of Mercedes-Benz Group AG, said:

Today, our global powertrain production network is already supplying the Mercedes-EQ vehicle plants with state-of-the-art batteries and electrified axles. With the new production setup, our powertrain plants are now optimally positioned for the new vehicle architectures from 2024. Sustainable, digital and flexible, our highly qualified and motivated colleagues around the world are now preparing for the rapid ramp-up of electric drive systems.

The automaker will invest around 1 billion euros in realigning its production setup for electric powertrain systems, including batteries, drive units, and axles, from 2024.

  • Battery network: Two German plants (Kamenz and Brühl) and the Mercedes Bejing plant in China will produce batteries for new EQ models based on the MMA and MB.EA platforms.
  • Electric drive units: Romania and Beijing locations will start ramping up electric powertrains in 2024.
  • Electric axles: Hamburg and Mettingen will produce electric axles for Mercedes EQ models.

Mercedes said the new setup results in increased flexibility and efficiency at these facilities and paves the way for securing the plant’s future.

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Avatar for Peter Johnson Peter Johnson

Peter Johnson is covering the auto industry’s step-by-step transformation to electric vehicles. He is an experienced investor, financial writer, and EV enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is a significant reason he pursued a career in investments. If he isn’t telling you about his latest 10K findings, you can find him enjoying the outdoors or exercising