EV Brief 7/24/21 EV Brief 7/24/21

Mercedes-Benz announces electrification plan, EV and battery rollout, end of internal combustion vehicles

Mercedes-Benz has announced an end to its internal combustion-engined product offerings, moving towards a range of electric-only vehicles by 2030. Mercedes-Benz will cease the development and release of internal combustion vehicle architectures from 2025, launching three electric-only platforms in the same year.

Mercedes-Benz has announced an end to its internal combustion-engined product offerings, moving towards a range of electric-only vehicles by 2030. The caveat provided by the company is that zero-emissions vehicles will prevail “where market conditions allow”, presumably giving the automaker a guilt-free emissions pass in markets where charging infrastructure and EV uptake is yet to develop.

Mercedes-Benz will cease the development and release of internal combustion vehicle architectures from 2025, and will launch three electric-only platforms in the same year. According to the company, customers will be able to choose an all-electric alternative for every model in the Mercedes-Benz range, and that “Mercedes-Benz intends to manage this accelerated transformation while sticking to its profitability targets.”

Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG said in a media statement that "The EV shift is picking up speed - especially in the luxury segment, where Mercedes-Benz belongs. The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade," "This step marks a profound reallocation of capital. By managing this faster transformation while safeguarding our profitability targets, we will ensure the enduring success of Mercedes-Benz. Thanks to our highly qualified and motivated workforce, I am convinced that we will be successful in this exciting new era."

Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG with the Mercedes-Benz EQ range.

Mercedes-Benz’s Future Product Line-Up

Let’s look at the above image and get a sense of where the brand is heading this decade. We’re already familiar with the upcoming EQS luxo-barge next to Ola Källenius, and pictured to its right is the soon-to-be-revealed EQE sedan. Both vehicles are based on Mercedes-Benz’s Electric Vehicle Architecture (EVA) modular platform. Behind them, from left to right, we have the GLB crossover, and the currently on sale EQC and EQA crossovers. In the third row, a mysterious crossover —likely the EQS SUV— sits just ahead of the EQV.

Mercedes-Benz revealed its subbrands including AMG, Maybach and G-Class —made infamous in the 2010s as a symbol of gas-guzzling excess— will go electric. The EQS SUV will be the first vehicle in the lineup to receive the Maybach work-over, as teased in this image below.

The Mercedes-Benz EQS SUV Maybach. Image: Mercedes-Benz

All subbrands to go electric. Images: Mercedes-Benz.

Brand new electric platforms from 2025

Three electric-only architectures will be launched in 2025:

MB.EA will cover all medium to large size passenger cars, establishing a scalable modular system as the electric backbone for the future EV portfolio.

AMG.EA will be a dedicated performance electric vehicle platform addressing technology and performance oriented Mercedes-AMG customers.
VAN.EA ushers in a new era for purpose made electric vans and Light Commercial Vehicles, which will contribute to emission free transportation and cities in the future.

Manufacturing and battery cell demands

Mercedes-Benz plans to install battery cell capacity of more than 200 Gigawatt hours with partners, and sets its sights on eight Gigafactories to support this product rollout. The company will develop new partnerships for R&D and production of battery cells in Europe.

Following Tesla’s lead and in an attempt to reduce the bureaucracy and cost of development for legacy automakers, Mercedes-Benz is reorganizing its powertrain activities to put planning, development, purchasing and production under one roof. The company claims this will deepen the level of vertical integration in manufacturing and development and electric drive technology.

Mercedes-Benz’s next-generation batteries will debut in 2025 and will be highly standardized, and suitable for use across more than 90 percent of all Mercedes-Benz cars and vans according to the automaker. The company intends to focus battery cell and module manufacturing in Europe, keeping the supply chain close to home. It will work with technology partners across Europe such as SilaNano to further increase energy density in batteries through silicon- carbon composite anodes.

Mercedes-Benz is also developing solid-state technology, with an aim to create batteries with even higher energy density and safety. The company is already trialling Citaro buses with solid-state batteries.

EV Brief’s Take

This is all great news in our view. After a general reluctance to commit to electrification from Germany’s big automakers, Mercedes-Benz is officially going “all in”. Massive investment in capital works, battery gigafactories, and cell R&D, as well as ensuring reduced emissions and CO2 neutrality from the production process will allow the brand to get ahead of strict EU emissions regulations, while ensuring future commercial viability.

Streamlining its business through centralised production, common battery modules and shared platform architecture will not only lead to positive business outcomes and an increased return on investment, but it should also bring with it faster product rollout timeframes, and a greater diversity of product offerings.

Source: Mercedes-Benz

EV Brief 3/26/21 EV Brief 3/26/21

Mercedes-Benz EQA electric crossover confirmed for Australian arrival in June 2021

Mercedes-Benz is set to get a head start in Australia, beating Hyundai’s IONIQ 5, Tesla’s Model Y and BMW’s iX3 to market in 2021. The manufacturer has confirmed that the EQA 250 will open for orders from Australian customers next month, with deliveries to commence in June.

Mercedes-Benz expands EQ range in Australia - EQA 250 available from June

Mercedes-Benz is set to get a head start over its rivals in Australia, beating Hyundai’s IONIQ 5, Tesla’s Model Y and BMW’s iX3 to market this year. The manufacturer has confirmed that the EQA 250 will open for orders from Australian customers next month, with deliveries to commence in June.

Priced from $76,800 AUD for the EQA 250 and $84,100 for the EQA 250 Edition 1 (excluding on-road costs), both models feature an asynchronous electric motor at the front axle, with 140 kW (190 PS) or power and 375 Nm (276 lb ft) of torque.

Regarding the battery, Mercedes-Benz has a 420 volt lithium ion battery with five modules and 200 cells in a double decker design. It offers a net energy content of 66.5 kWh, with an energy consumption rating of 16.2kWh/100km. The EQA 250 offers 480 kilometres ADR range (426km/265miles WLTP), so expect around 400km in real world Australian conditions.

Mercedes-Benz Australia is offering a comprehensive standard equipment list on the EQA. The EQA 250 receives adjustable damping with DYNAMIC SELECT driving modes, 19-inch AMG 5-twin spoke AMG alloy wheels, the twin-10.25-inch MBUX infotainment system/instrument cluster, Apple Carplay/Android Auto, wireless phone charging, DAB+ digital radio, DISTRONIC active distance assist cruise control, and active assists including blind-spot monitoring, Traffic Sign Assist, lane keeping and automatic emergency braking.

The Edition 1 package is a limited volume option, and includes the above features plus 20-inch AMG multi-spoke alloy wheels in matte copper, AMG exterior trim, Neva grey leather, backlit design trim elements in the interior, silver chrome metallic finishes, AMG pedals, illuminated door sill panels, a unique vehicle key, sports multifunction steering wheel, and most importantly, “Edition 1” floormats.

We can’t wait to see the EQA 250 land in Australia. While the EQA range is still based on Daimler’s MFA2 platform architecture—we’ll have to wait for the EQS to debut the modular MEA platform—it’s size, performance, equipment, looks and price should see it compete admirably in the popular premium compact crossover market in Australia. We covered the global launch of the EQA range extensively; for more information and pictures, read our article here

EV Brief 1/21/21 EV Brief 1/21/21

2022 Mercedes-Benz EQA brings electric drivetrain, "EQ" styling and badge appeal to compact SUV class

Mercedes-Benz has unveiled the second “EQ” battery electric vehicle to join the range. Essentially an EV variant of the automaker’s recently released GLA SUV, the EQA joins the larger EQC in 2021, and Mercedes-Benz expects to release further electric derivatives of popular models over the coming 2-3 years

Mercedes-Benz reveals 2022 EQA compact SUV

Initially offered with a 66.5kWh battery and 140kW (187hp) / 375Nm (275 ft-lb) front-engined motor
Confirmed for release in Europe and Australia, but North American release uncertain
Performance-oriented version likely in the model’s future

Mercedes-Benz has unveiled the second “EQ” battery electric vehicle to join the range. Essentially an EV variant of the automaker’s recently released GLA SUV, the EQA 250 joins the larger EQC in 2021, and Mercedes-Benz expects to release further electric derivatives of popular models over the coming 2-3 years; namely the EQE and larger EQS sedans, and an EQB based on the GLB SUV.

Despite a 7.5 per cent downturn in global sales for 2020, most likely due to COVID-19, Mercedes-Benz reported 2,164,187 units for the year. Depending on how you look at it, the company is either a product planner’s dream or nightmare, with Mercedes-Benz occupying almost every market segment imaginable. With eight SUVs already available — GLA, GLB, GLC, GLC Coupe, GLE, GLE Coupe, GLS and EQC — one could be mistaken for thinking the company has more than enough variants available to cater to market needs.

Mercedes-Benz thinks differently, and the EQA will launch in Germany in 2021 at a price of €47,540 — USD$57,700/AUD$74,000 — competing directly with the likes of Volvo’s XC40 Recharge, BMW’s iX3, Volkswagen’s ID.4 as well as the Tesla Model 3 and model Y. It’s likely to make it to Australia too, but we think that given the size and performance of the vehicle, for the US dollar equivalent of €47,540 Mercedes-Benz North America won’t see a compelling case for bringing the EQA to North America.

Exterior Design

No one will accuse Mercedes-Benz designers of being too avant-garde with their designs. The EQA is a pleasingly soft interpretation of a mix of EQC and GLA design cues. While other fully electric vehicles eschew traditional design cues such as grilles and intakes and long front ends, the EQA still looks like a combustion-engined vehicle. It’s almost as if it doesn’t want to be the odd one out amongst its peers.

Call us strange, but if a design element serves zero function and provides no net benefit, wouldn’t it be better to remove it? Nevertheless, the EQA is sure to attract present Mercedes-Benz customers who are comfortable with the corporate design language. Mercedes-Benz claims the vehicle’s “electro-aesthetics” of the design are indicative of the Progressive Luxury within; what this actually translates to is blue “EQ” lettering, a high-gloss black front grille, multi-spoke aerodynamic wheels and an LED rear light bar strip.

With a wheelbase of 2.729cm, it is slightly shorter than VW’s ID.4 at 2.766cm, and considerably shorter (17cm) than the Tesla Model Y’s 2.891cm wheelbase. Overall length of the EQA is 4.463cm, and the width is 1.834cm. This compares to the GLA’s dimensions of 2.699cm (-3cm) for the wheelbase, 4.445cm (-1.8cm) for the length and 1.804cm (-3cm) for the width.

The EQA brings Mercedes’ signature “EQ” styling to the compact SUV class

Interior Design

On the inside, you’re greeted with the now familiar twin 7-inch displays (European base specification) or twin 10.25-inch displays that Australian and North American Benz owners would recognise. The Mercedes-Benz User Experience(MBUX) system has a number of different display presets available, and a degree of configurability. The dashboard and doorcard design is very similar to that of the GLA, with turbine-style air vents, a recessed dash inlay area, and conventional shapes and materials. Rose gold metallic-look detailing around buttons and air vents, a-la Mercedes-EQC is a must-have option for those looking to add a touch of the current fashion zeitgeist; think Apple’s rose gold iPhone, or the last Michael Kors watch you saw on someone’s arm and you get the picture.

Blue has become the de rigeur colour to signify an electrified variant; think about it. From Nissan’s Leaf, to the range of BMW’s “I” vehicles, blue is a colour used to represent electricity, possibly due to the fact that is how the human eye “sees” it. It’s no surprise then that Mercedes splashes blue all over the interior, from the dash, to the seating, trim and ambient lighting.

The Interior of the EQA will be familiar to those who drive an A-Class or GLA

Battery and Drivetrain

The performance of the EQA will be adequate if not scintillating; with a 66.5 kWh (net) double decker lithium ion battery comprised of 200 cells, Mercedes-Benz claims the 140kW (187hp) / 375Nm (275 ft-lb) motor will reach 100km/h in 8.9 seconds, and hit a top of 160kmh (99mph). Mercedes-Benz claims a WLTP combined range of 426km (265mi) and due to the battery mass, the EQA is a bit of a porker, at 2,040kg (almost 4,500lbs). Mercedes states the EQA launch variant will hold an energy efficiency of 15.7 kWh/100km.

Mercedes announced last year that they would be teaming up with CATL for future battery projects, but it is not known at this stage whether the EQA is a result of this collaboration, or whether its energy platform comes from the wholly owned subsidiary Deutsche Accumotive based in Kamenz, Germany.

The EQA utilises permanent magnet technology, whereby the AC motor incorporates magnets. The magnets – and thus the rotor – follow the rotating alternating current field in the winding of the stator. The engine is described as synchronous, because the rotor turns at the same rate as the magnetic field of the stator.

The EQA also features an intelligent recuperation system, which continuously generates coasting simulations in the background during motion. Depending on the state of charge of the battery and the traffic situation, the car computes whether the vehicle should ideally be allowed to coast with the lowest possible driving resistance with the driver's foot off the pedals, or whether it should be decelerated so that the battery can be charged.

Eco Assist functions also take into account route profiles, speed limits and traffic flow to assist with the vehicle’s efficiency strategy. According to Mercedes-Benz, the driver can select the recuperation function manually from a choice of five different modes using the two paddles behind the steering wheel. The paddle on the left increases the level of recuperation, the paddle on the right reduces it.

Mercedes-Benz utilises a double decker battery design for the EQA

Autonomy and Vehicle Technology

Mercedes-Benz has long been a leader in advanced vehicle safety systems, and features that were once only available on an S-Class are now widely seen across the range. On top of the now expected active safety systems, the EQA features Active Distance Assist DISTRONIC with the braking for stationary vehicles in front, and extended, automatic moving off in a traffic jam. The Active Speed Limit Assist with Evasive Safety Assist reacts to changing speed limits in conjunction with Traffic Sign Assist, carries out route-based speed adjustment ahead of bends, roundabouts, toll booths etc and when approaching a traffic jam.

The Navigation with Electric Intelligence system takes into account the electric range, the current electrical consumption, the topography of the proposed route (due to the energy requirements) and the temperatures along the way (due to the duration of the charge). It also looks at the traffic situation along the planned route, as well as the available charging stations to be found there and their capacity. Mercedes states that the customer does not necessarily always have to take on board a full charge, but will be given a specific recommendation as to the required charging time at the charging station. The charging station stops will be planned in the way that is most favourable for the overall travelling time. In other words, for those familiar with Tesla’s route planning, the car will advise shorter, more frequent stops rather than one long charging stop if it results in a faster overall trip. This is similar to the software from A Better Route Planner.

The EQA features a heat pump, that utilises waste-heat from the drivetrain and uses it to warm the cabin. The driver can also pre set the desired temperature of the cabin before commencing a journey.

The EQA 250 with a 66.5 kWh battery and 140kW motor will be the first to launch in Europe mid-2021, and in Australia/New Zealand by the end of 2021. It’s likely that more performance-oriented versions will appear from 2022.

Full suite of press images below. Courtesy Mercedes-Benz AG

EV Brief 12/15/20 EV Brief 12/15/20

Mercedes-Benz Accelerates EV Rollout; 8 BEVs In Production by 2022

Mercedes-Benz has today announced announced its ambition to fully electrify the entire product portfolio by 2039 as part of a plan to achieve CO₂ neutrality, and this includes the rollout of eight all-electric Mercedes-EQ models from 2022 built on dedicated electric architecture. The first mass-market Battery Electric Vehicle (BEV) from Stuttgart, the Mercedes-Benz EQC has been available around the world since 2019, and is based on the pre-existing GLC SUV platform.

Update: Mercedes-Benz has released an additional rendering, which you can find below. This vehicle looks to be pretty close to final production design, and will be Mercedes’ first D-segment vehicle without a traditional grille.

The Mercedes-Benz EQS, as shown above and below will be the first to commence production in early 2021, and is essentially the luxurious S-Class reimagined for a zero emissions future. From the camouflagued vehicle, we can see an imposing physical presence -something the S-Class has always been known for- and a low, wide nose, possibly with a faux grille a-la Jaguar i-Pace or an indentation around the badge. The bonnet (hood for you North Americans!) rises steeply into a huge windscreen, which appears to continue above the driver’s head, as is the trend nowadays.

The high bootline and almost fastback look is unusual for the S-Class segment, however the large tail lights with some presumably funky graphics and lightbar spanning the width of the rear should provide a visual family reference to the EQC, while defining the EQS’ unique character.

The side profile looks a little slab-sided under camouflague, with the C-pillar, doors and rear fender covering a large area relative to the glasshouse, however it looks like there may be some interesting surfacing hiding under that blue wrap. The Goodyears on the test car look to be hugging at least 21-inch or 22-inch wheels, as is the trend these days. That’s aesthetics over efficiency for you.

The EQS will be produced in Sindelfingen from early 2021, while the less expensive EQA and EQB models will be produced at the Rastatt and Kecskemét (Hungary) plants respectively. We can expect the world premiere of the EQA on January 20, 2021 according to Mercedes-Benz.

Fast forward to the second half of 2021, and Mercedes-Benz states that the EQE ‘business sedan’ will begin production at the Bremen plant, as well as in Beijing for the Chinese domestic market only. Continuing the the Germans’ fondness for manufacturing SUVs in the United States, the EQE and EQS SUV variants will be manufactured at the brand’s Tuscaloosa Alabama plant.

According to Mercedes, a total of eight Mercedes-EQ electric vehicles will be produced at seven locations on three continents by 2022.

Daimler’s Battery Plans

Battery development, manufacture and supply will obviously be a critical part of this increase in BEVs, and Mercedes-Benz plans to increase investment in the energy side of manufacturing, alongside battery specialists.

Mercedes-Benz and BAIC have jointly set up a battery production plant at the existing location in the Yizhuang Industrial Park in Beijing (China) for vehicles sold in the domestic market.

In addition to two battery plants in Kamenz (Germany) already producing battery systems for Mercedes-Benz, the company plans a future battery plant at the Sindelfingen site, increasing capacity already available from the nearby Untertürkheim plants in preparation for locally built electric models.

Furthermore, Mercedes-Benz is upgrading the Jawor (Poland) battery plant, currently manufacturing battery packs for plug-in hybrid variants of the C,E and S-Classes, to include battery systems for upcoming EQ models, as well as planning a battery plant in the vicinity of the Tuscaloosa Alabama factory.

You can read the full press release below, alongside an interview with Jörg Burzer, Member of the Board of Management of Mercedes-Benz AG, Production and Supply Chain.

Mercedes-Benz Sindelfingen plant (Germany): Launch of electric luxury sedan EQS in Factory 56 in first half of 2021

Mercedes-Benz Rastatt plant (Germany): Production of first all-electric compact SUV EQA started - also at Beijing plant (China) in 2021
Mercedes-Benz plant in Kecskemét (Hungary): Decision to locate second all-electric compact SUV EQB. Production launch in 2021 - also at Beijing plant (China)
Mercedes-Benz Bremen plant: Production launch of electric EQE business sedan in 2021 - at Beijing plant soon thereafter (China)
Mercedes-Benz Tuscaloosa plant (USA): SUV variants EQS und EQE begin in 2022
Mercedes-Benz battery production network: Production start of battery systems for EQS and EQE in Untertürkheim/Hedelfingen (Germany) imminent. Production of compact SUV battery systems in Kamenz (Germany), Jawor (Poland) and Beijing (China) plants. Tuscaloosa battery plant will produce batteries for SUV variants of EQS and EQE beginning 2022

15 December 2020, Stuttgart. Mercedes-Benz is targeting leadership in electric drives and vehicle software. The consistent electrification of the entire product portfolio is a key element of the strategic focus "Ambition 2039" and a prerequisite on the way to CO₂ neutrality. In 2022 the portfolio includes eight all-electric Mercedes-EQ models. The global Mercedes-Benz production network is ready for the company’s electric product offensive and is integrating its Mercedes-EQ models into series production in its existing plants.

Markus Schäfer, Member of the Board of Management of Daimler AG and Mercedes-Benz AG; responsible for Daimler Group Research and COO Mercedes-Benz Cars: “With its ‘Electric First’ strategy, Mercedes-Benz is consistently on the path to CO₂ neutrality and is investing heavily in transformation. Our vehicle portfolio becomes electric and thus also our global production network with vehicle and battery factories. We intend to lead in the field of e-mobility and focus in particular on battery technology. We are taking a comprehensive approach, ranging from research and development to production, and also including strategic cooperation.”

The EQS, the first electric luxury sedan from Mercedes-Benz, will start in the first half of 2021 in Factory 56 at the Sindelfingen site (Germany). With the production launch of the electric compact SUV EQA at the Rastatt plant (Germany) and the current decision to locate EQB production in the Hungarian plant in Kecskemét, the company is taking further important steps toward making its product portfolio CO₂ neutral. The course has also been set toward “Electric First” in the global powertrain production network as well. High-efficiency battery systems will also be manufactured and assembled within the production network.

Jörg Burzer, Member of the Board of Management of Mercedes-Benz AG, Production and Supply Chain: “The Mercedes-Benz production network is global, digital and flexible, and ready for the upcoming electric offensive – thanks, of course, to our highly qualified and motivated employees worldwide. We are now beginning a real Mercedes-EQ fireworks display. Six electric product launches by 2022 underscore the strength and competence of our Mercedes-Benz production sites worldwide. The production network will have a total of six Mercedes-EQ car locations. Local production of highly efficient battery systems plays a central role in the Mercedes-Benz strategy - coupled with a comprehensive sustainability concept that spans the entire life cycle of the battery all the way to recycling.”

Mercedes-Benz vehicle plants consistently implement electric offensive

In May 2019 production of the EQC (combined power consumption: 21.5 kWh/100 km; combined CO₂ emissions: 0 g/km) at the Mercedes-Benz plant in Bremen (Germany) was integrated into ongoing series production. Just a few months later the German-Chinese production joint venture, Beijing Benz Automotive Co. Ltd. (BBAC), launched EQC production for the local market in China. In 2020 production of the EQV premium electric MPV (combined power consumption: 26.4 kWh/100 km; combined CO₂ emissions: 0 g/km)1 started in Vitoria, northern Spain.

Compact car class customers can look forward to two fully electric compact SUVs in the EQA and EQB in 2021. EQA will celebrate its world premiere on January, 20 2021 as the first fully electric derivative of this compact car. The EQA production launch at the Mercedes-Benz Rastatt plant went smoothly. As with the EQC from Bremen and Beijing and the EQV from Vitoria, which are already on the market, the fully electric models at the Rastatt plant run on the same production line as compact vehicles with conventional and hybrid drives. That means all five vehicles produced in Rastatt are electrified: In addition to the fully electric EQA, the AClass, A-Class sedan, B-Class and the compact SUV GLA are also produced at the Mercedes-Benz plant in Rastatt - with classic combustion engines as well as plug-in hybrid drive. With that the Mercedes-Benz Rastatt plant is making an important contribution on the road to a CO₂ neutral vehicle fleet and to the Mercedes-Benz AG electric offensive. EQA production will also follow next year (2021) at BBAC in Beijing for the Chinese market.

EQB production will launch in 2021 at two locations in the global Mercedes-Benz Cars production network: in the Hungarian Mercedes-Benz plant in Kecskemét for the world market and in the German-Chinese joint venture BBAC in Beijing for the local market. Plant preparation, including employee training and renovation work, is already underway. The compact SUV EQB will be the first purely electrically powered production vehicle from Hungary and will complement the plug-in hybrid portfolio consisting of the CLA and CLA Shooting Brake. The A-Class will also be produced in Kecskemét with a plug-in hybrid drive, in addition to production in the German Mercedes-Benz plant in Rastatt.

Furthermore, in the first half of 2021 production of the EQS electric luxury sedan will begin in Factory 56 at the Mercedes-Benz plant in Sindelfingen (Germany). EQS is the independent, fully electric member in the new S-Class program and is the first to use the new electric architecture for luxury and upper-class electric vehicles at Mercedes-Benz. In Factory 56 the S-Class and, in the future, the Mercedes-Maybach S-Class, and the EQS will be produced in a fully flexible manner on the same line. Factory 56 embodies the future of production at Mercedes-Benz and sets new standards for automobile construction. In Factory 56 efficiency gains of around 25 percent are achieved compared to the previous S-Class assembly. This is made possible by optimizing the entire value chain and full digitalization with MO360, the digital Mercedes-Benz production ecosystem. For further information on this: https://media.daimler.com/marsMediaSite/ko/en/47014243

Furthermore, the Mercedes-Benz plant in Bremen will begin production of the EQE business sedan in the second half of 2021, followed shortly thereafter at the Beijing plant. The EQE thus complements the allelectric portfolio of the two plants. The Beijing plant will then produce a total of four Mercedes-EQ models for the local market.

The Mercedes-Benz plant in Tuscaloosa (USA) is also preparing for production of the EQE SUV and EQS SUV in 2022, which will be produced in the future on the same line with SUVs with conventional and plug-in hybrid drives.

In 2022 a total of eight Mercedes-EQ electric vehicles will be produced at seven locations on three continents. This is possible because the company made early investments worldwide in flexibility and technical equipment with future-oriented Industry 4.0 solutions. In the Mercedes-Benz AG plants, vehicles with different drive types can be produced in parallel thanks to highly flexible structures. With a view to the strategic goal of generating more than half of sales with so-called xEVs, i.e. plug-in hybrids and electric vehicles, from 2030 on and gradually increasing the purely electric share, the high degree of flexibility is a decisive advantage. It enables production to be adjusted at short notice depending on market demand.

smart rounds off the electric Mercedes-Benz Cars portfolio with three additional models. The smart EQ fortwo (combined power consumption: 16.5 kWh/100 km, combined CO₂ emissions: 0 g/km)1 and smart EQ fortwo Cabrio (combined power consumption: 16.8 kWh/100 km, CO₂ emissions combined: 0 g/km)1 are produced in Hambach, France, and the smart EQ forfour (combined power consumption: 17.3 kWh/100 km; combined CO₂ emissions: 0 g/km)1 in Novo Mesto, Slovenia. The next generation of smart electric vehicles will be produced by the joint venture smart Automobile Co., Ltd. in China. This is a joint venture of MercedesBenz AG and the Zhejiang Geely Group (Geely Holding).

Plug-in hybrid drive is important as a key technology and intermediate step toward a purely electric product portfolio. More than 20 plug-in hybrid model variants are already an integral part of the Mercedes-Benz product portfolio. The portfolio will be expanded to include more than 25 model variants by 2025. Their production therefore also plays an important role in the global production network. Plug-in hybrid vehicles are already rolling off Mercedes-Benz Cars assembly lines in almost all car plants.

Global battery production network: a key success factor in the Mercedes-Benz electric offensive

The batteries for the Mercedes-EQ electric vehicles are supplied by a global battery production network with plants on three continents. Local battery production is a key success factor for the Mercedes-Benz electric offensive.

Two plants in Kamenz (Germany), have been producing battery systems for hybrids, plug-in hybrids and electric vehicles since 2012. The second battery factory at the site began operations in 2018 and has been producing the EQC's battery systems since 2019. It was designed from the start as a CO₂ neutral plant and combines, among other things, solar energy, geothermal energy and a combined heat and power plant. The battery systems for the EQA have also recently rolled off the production line at the site. Since the start of production at Accumotive, more than a million batteries based on lithium-ion technology for electric, plug-in hybrid vehicles and 48-volt systems have been produced at the Kamenz site.

Mercedes-Benz and BAIC have jointly set up local battery production at the existing location in the Yizhuang Industrial Park in Beijing (China). This supplies the nearby vehicle plant, which has also added all-electric Mercedes-EQ models to its portfolio with the EQC. Production of battery systems for the EQC started there in 2019. With the start of production of the EQA, EQB and EQE, the plant will manufacture battery systems for a total of four Mercedes-Benz EQ models beginning in 2021.

This year the battery plant in Jawor (Poland) started producing plug-in hybrid batteries for the C, E and SClasses. In the coming year the location will expand its portfolio to include battery systems for the compact Mercedes-EQ models, the EQA and the EQB. Much like the battery plant in Kamenz, the plant was designed from the outset for CO₂ neutral production.

In the future at the Untertürkheim (Germany) site two plants will produce battery systems. Final preparations for the production of the battery systems for the EQS, which will roll off the production line in nearby Sindelfingen in the first half of 2021, are currently underway at the Hedelfingen plant. The battery system for the EQE will also be produced in Hedelfingen. Another battery plant is currently being built in the Brühl facility, which will manufacture battery systems for Mercedes-Benz plug-in hybrids starting 2022. The work on the building has already been completed. The battery plant in Brühl will be fitted with the corresponding equipment in the coming months.

Production of the EQS and EQE SUV models will start in 2022 at the Mercedes-Benz plant in Tuscaloosa (USA). A battery plant is currently being built in the immediate vicinity and will supply highly efficient battery systems for both models. Work on the building has already been completed. The ultra-modern systems will be installed in the coming months.

In addition, the Mercedes-Benz production strategy currently provides for another battery plant at the Sindelfingen site.

Together with local partner Thonburi Automotive Assembly Plant (TAAP), Mercedes-Benz Cars set up a battery production facility in Bangkok (Thailand) and began operations in 2019. Battery systems for the current C, E and S-Class plug-in hybrids are manufactured at the site. Preparations are also being made there to manufacture drive batteries for all-electric Mercedes-EQ brand vehicles.

Electric First und Ambition2039: CO₂ neutral mobility und production

Under “Electric First,” Mercedes-Benz is pursuing the consistent electrification of all model variants and vehicle types as a clear objective. The decisive factor here over the next few years is the gradual increase in the purely electric share of the vehicle portfolio. So-called xEVs, plug-in hybrids and fully electric vehicles, should account for more than half of sales by 2030 - and the trend is rising. Electrically powered vehicles from Mercedes-Benz are enjoying increasing popularity. The company delivered a total of 45,000 electric vehicles and plug-in hybrids (xEVs) worldwide in the third quarter of 2020.

With “Ambition2039,” Mercedes-Benz introduced its path to CO₂ neutrality over a year ago. Vehicle production plays a crucial role in this regard. As early as 2022 the company’s Mercedes-Benz car and van plants will produce CO₂ neutrally around the world. This includes more than 30 car and van plants, as well as battery plants.

Brief interview

“We’re producing the Mercedes-EQ models the Mercedes way: Completely digital and flexible, highly efficient and maximally sustainable.”

Questions for Jörg Burzer, Member of the Board of Management of Mercedes-Benz AG, Production and
Supply Chain

Mr. Burzer, are you equipped for the production of electric vehicles in your production network?

The Mercedes-EQ production network is ready for our electric offensive. We started this transformation several years ago and set up our plants with maximum flexibility. The Mercedes-EQ electric models are gradually being integrated into our existing vehicle plants worldwide. They come off the same lines as vehicles with combustion engines or plug-in hybrid drives. The same applies to all of our Mercedes-Benz car plants - a total of six on three continents. This concept is particularly advantageous because demand for electric and electrified vehicles is developing very differently by region and we can adjust our production planning accordingly on short notice. In this way we can manufacture exactly what our customers want.

What specifically does your production planning for the upcoming model offensive look like?

One thing is certain: the proportion of all-electric vehicles in our portfolio will increase sharply in the coming years. By 2030 more than fifty percent of our vehicles will roll off the assembly line as so-called xEVs. Plug-in hybrids and hybrids will therefore continue to play an important role in our production planning over the next few years. However, our target is clearly designed for 100 percent Mercedes-EQ and we are directing our capacity precisely in this direction. We are preparing our production, as well as our employees, step by step for this change. Our sustainability concept is also a central focus: from 2022 on we will produce CO₂ neutral in our Mercedes-Benz plants worldwide.

What, specifically, were the challenges?

Every vehicle launch during ongoing production comes with challenges. That, of course, also applies to electric vehicles. However, thanks to the know-how in our plants and cross-location system planning, we could quickly develop and implement flexible solutions. The consistent digitalization of our processes through our digital production ecosystem MO360 also made a significant contribution. An important factor here, of course, is attaining targeted qualifications for our colleagues in our plants, which we consistently promote.

How will powertrain production continue in the future?

For the global Mercedes-Benz powertrain production network, the shift toward e-mobility poses a special challenge. However, we are determined to continue aligning our drive division to this change and make it sustainable for the future. We have already built up extensive know-how in our powertrain plants in recent years. It starts with the expansion of our battery production network and includes, among other things, manufacturing and assembling parts of the electric drivetrain ourselves. Still, it’s also clear that the drivetrains of the future will differ significantly from those of today.

You will manufacture the batteries for the Mercedes-EQ models in house?

The local production of batteries is an essential success factor in our electric offensive. With a view to steadily increasing demand and, in accordance with our production planning, we are setting up our global battery production network to be flexible worldwide. Today we already produce batteries in Kamenz, Bangkok and Beijing. The ramp-up of our battery plants in Hedelfingen and Jawor is imminent and our colleagues in Brühl and Tuscaloosa are already preparing to start production in 2022. Our production network is very well positioned for the Mercedes-EQ model offensive.

Which new electric model are you personally most looking forward to?

Basically, I look forward to every new Mercedes-Benz. A very special milestone is certainly the upcoming EQS production launch. It will roll off the assembly line, together with the S-Class, in our new Factory 56 at the Mercedes-Benz plant in Sindelfingen. Here we’re setting the course for our entire production network: With the most modern production technologies Factory 56 is a blueprint for our global network. At the same time, it bolsters our claim - the Mercedes way - to the production of the Mercedes-EQ models: completely digital and flexible, highly efficient and maximally sustainable.