Mercedes-Benz to Invest Billions of Dollars in Vehicle Electrification Project by 2030 and Modernization of Its Factories

Written by Roberta Souza

Published on 23/03/2023 at 12:56

Updated on 23/03/2023 at 17:13

Foto: Reprodução Google Imagens

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According to the company, the intention of the investment in vehicle factories is to reduce CO2 emissions as much as possible, following the EU (European Union) target

The German giant Mercedes-Benz announced to the world that it will invest billions of dollars in its already built factories in China, Germany, and Hungary by 2030, following its vehicle electrification project. According to Automobilwoche magazine, Mercedes-Benz’s intention is to comply with the EU’s target of reducing carbon emissions in the environment and also follow the trend of electric vehicles in the market, according to the website Olhar Digital.

The EU’s target that Mercedes-Benz aims to follow is to halve CO2 emissions from passenger cars by the end of 2030, in addition to the plan to cease the sale of fossil fuel-powered vehicles by 2035. The automaker Mercedes-Benz claims to be prepared to replace its fleet of conventional vehicles in its factories with electric vehicles by 2030, provided the market cooperates.

According to the production manager of Mercedes-Benz factories, Joerg Burzer: “We are investing an amount of three million per plant for the preparatory period.” Moreover, Mercedes-Benz states that the investments will be at the factories in Beijing, Rastatt (Germany), and Kecskemet (Hungary).

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The First Phase of Modernization of Mercedes-Benz Factories is Expected to Be Completed in 2024

The Mercedes-Benz project is expected to start in the coming months of 2023, with the German vehicle factory’s modernization platform, MMA (Modular Platform for Electric Cars — Mercedes Modular Architecture), expected to be ready by 2024.

Mercedes-Benz also states that it is planning to invest in upgrading painting systems in some of its vehicle factories, aiming to reduce energy and water consumption and also the reliance on gas, moving towards complete decarbonization.

The manager of Mercedes-Benz also mentions that the company is prepared for any changes that may occur, as it is also planning to expand its factory in the United States to benefit from the Inflation Reduction Act (IRA), a regulation that was approved in 2022 as a kind of tax incentive for the country.

He concludes: “The structural conditions of vehicle factories worldwide change repeatedly; we may have to respond to that.”

Mercedes-Benz to Invest Billions of Dollars in Vehicle Electrification Project by 2030 and Modernization of Its Factories

According to the company, the intention of the investment in vehicle factories is to reduce CO2 emissions as much as possible, following the EU (European Union) target

The First Phase of Modernization of Mercedes-Benz Factories is Expected to Be Completed in 2024

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