Daimler Investing €500M Into Mercedes-Benz Plant For Hightech Production For E-Mobility

1 year ago by Mark Kane 11

Aerial view of the Mercedes-Benz plant in Hamburg

Aerial view of the Mercedes-Benz plant in Hamburg

Mercedes-Benz GLC 350 e 4MATIC

Mercedes-Benz GLC 350 e 4MATIC

Daimler announced another significant investment related to electric cars.

The company’s Mercedes-Benz plant in Hamburg is to be upgraded for about €500 million (over $570 million) in order to convert the plant into a high-tech site producing drive components for electric mobility.

The main tasks for the plant are: axles and axle components, steering columns and lightweight structural components, as well as exhaust technology components.

Investment of €500 million indicates strong commitment to expand plug-in lineup in the near future.

Queue the PR statement!

“Hamburg – Daimler is comprehensively modernizing the Mercedes-Benz Hamburg plant and is expanding its product portfolio to include key components for electric driving. This is part of the transformation plan that the company has agreed on with the works council. With the agreement in Hamburg, Mercedes-Benz Cars has now successfully set out the transformation plans for all plants in Germany.

“The completion of the transformation plans is an important milestone in our growth strategy. We put our vehicle and powertrain plants on a future-oriented and sustainable foundation and strengthen their international competitiveness. Thus, we increase the flexibility and efficiency in our global production network. For that purpose we are investing several billion euros”, said Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Production and Supply Chain Management.
The transformation plan ensures the competitiveness of the site and keeps employment stable. In addition, the agreement provides for a highly flexible production through modern shift models.

“With the investment of 500 million euros, we will develop the Hamburg plant into a high-tech site producing drive components for electric mobility. This is a proof for the high qualification and outstanding performance of our employees. The transformation plan is a future-oriented achievement for the plant that offers employees new opportunities”, says Wolfgang Lenz, Site Manager Mercedes-Benz plant Hamburg. Company and works council have agreed on an increase in training places, resulting in 26 positions each year for the years 2017 and 2018. Furthermore, ten new permanent jobs will be created and filled this year.

“For the employees, the now agreed transformation plan is a clear, positive signal: The plant takes part in the company’s growth strategy and profits from future prospects of the industry. Our central goal in the negotiations was the assurance of future products for the site. The increase in the number of training places and permanent positions indicate that the company continues to count on the plant in Hamburg”, says Jörg Thiemer, Chairman of the Works Council Mercedes-Benz plant Hamburg.
The production of axles and axle components, lightweight structural components and steering columns, along with exhaust technology, will remain an integral part of the plant. The agreement provides the Mercedes-Benz plant Hamburg with extra capacity for axles and axle components. The third generation of steering columns will also be produced in Hamburg. This means that every Mercedes-Benz vehicle will continue to include a part from Hamburg. With the production of the cockpit crossmember for the C- and E-Class, lightweight structural components will continue to be produced here.

The innovative components, manufactured using environmentally responsible production technologies, make a significant contribution to reducing vehicles’ CO2 emissions.
“With the transformation plan for the Hamburg plant we are continuing the successful strategic realignment of our German powertrain plants. We have defined a sustainable product portfolio and measures to increase efficiency and flexibility for all plants, leaving us extremely well prepared to face the future”, says Frank Deiß, Head of Production Powertrain Mercedes-Benz Cars and Site Manager Mercedes-Benz plant Untertürkheim.

About the Mercedes-Benz plant Hamburg
Within the global powertrain production network of Mercedes-Benz Cars, the Hamburg plant develops and produces axles and axle components, steering columns and lightweight structural components, as well as exhaust technology components. Every Mercedes-Benz car contains at least one product from Hamburg. The plant has more that 2,500 employees and has been working at full capacity for many years.”

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11 responses to "Daimler Investing €500M Into Mercedes-Benz Plant For Hightech Production For E-Mobility"

  1. Skryll says:

    exhaust technology ? seriously. More interesting would be how they will source all the battery capacity.

  2. Avishay says:

    It’s important to have high quality exhaust pipes in your EV!

  3. Jychevyvolt says:

    PHEV will need exhaust.

  4. Get Real says:

    Fixed that for you.

    Compliance-mobile PHEVS will need exhaust.

    Sincerely,
    The management of Daimler-Benz.

    1. Jychevyvolt says:

      Don’t care if it’s compliance or not. Every EV helps. If every vechicle had 2 kWh battery, it would solve most of the emission problem.

      1. Terawatt says:

        Not so. If every car had a 10 kWh battery pack AND an appropriately designed driveline it would make a big difference – but still not as big as we should.

        I don’t see why we should cheer every little improvement with no regard to what is actually possible. But it’s the regulators, not the corporations or consumers, that have to make sure you don’t get away with just making tiny improvements.

        BMW X5 plug-in is an excellent example of how to get a car that is actually worse than the average ICE vehicle classified as a (PH)EV. The Norwegian EV association tested it in Oslo, where curbside charging is easy to find, and still ended up with a higher petrol consumption than the average for new cars of any kind.

        It’s really stupid to incentivize vehicles like these simply because we get bigger emission cuts if we concentrate them on the best technology. CARBs nine credits for hydrogen cars is a scandal.

        1. Rick Danger says:

          +1 Terawatt, well said.

  5. Get Real says:

    Uh,no.

    2 kwh = 6 miles.

    Better then zero I suppose, but still incredibly weak.

    1. Terawatt says:

      6 miles in good conditions when the car is brand new. With such a tiny capacity you couldn’t draw enough power to get decent performance in all-electric mode, so you’d be burning fuel all the time.

      People forget that we don’t just need improvement, but a radical departure from the carbon-based economy. The EU committed to a 60% reduction, in the transport sector, from 1990 levels by 2030. Today’s level is 20% above 1990. And it’s 15 years away. Basically, if we really meant it we’d need to sell only BEVs starting now, AND start greening the grid. It takes 15 years after all to replace the fleet.

      IDK what the percentages are for the US, but given that it’s fleet is half as efficient as Europe’s today, it should be steep declines.

      And yet, the regs allow you to put a tiny battery and motor in and call it an EV.

  6. Alaa says:

    Exhaust! I suppose that is to appease Russia.

  7. Heisenberghtbacktotheroots says:

    Dear Marc,

    I’m sorry to critizize on you, but would you please include the word “exhaust” into the headline and remove “e-mobility” ?

    I’m waiting really really a lot that finally some traditional car company will do what the headline suggests, and then I read the article and BOOM! My dreams fall to pieces…