Mercedes-Benz’s big EV investment

Mercedes-Benz is setting up a US$1 billion (NZ$1.38b) electric vehicle production facility in the United States.

The company plans to produce EQ-branded SUV models at Mercedes-Benz US International, its Tuscaloosa, Alabama site, starting around 2020.

A battery plant will also be built nearby from next year, also likely to be operational in 2020.

Media reports suggest it’s a “shot” at Tesla.

“We are excited to celebrate 20 years of production in Tuscaloosa by expanding our operations in the region and by bringing our electric initiative to the United States,” Mercedes-Benz cars, production and supply chain board member Markus Schafer says.

“With production locations for EVs and batteries in Europe, China and now the US, our global network is ready for the era of electric vehicles.”

Logistics activities in the US will be expanded with a new Global Logistics Center and a new after-sales North American hub, exporting car-kits to global assembly plants and spare parts from the US and North America to worldwide markets.

“As a result of our investments in Alabama, Mercedes-Benz customers will soon be able to enjoy advanced technology coupled with a luxury driving experience,” Schafer says.

Tuscaloosa is home to Mercedes-Benz’s SUV production for the world market, having started production of the former M-Class (today the GLE) in 1997, exporting more than 70% of its SUVs.

With an earlier investment of US$1.3 billion (NZ$1.8b) announced in 2015, the plant is being expanded to prepare for the next SUV generation, including plug-in hybrid models. The expansion comprises a new body shop, major enhancements to the SUV assembly shop, as well as upgraded logistics and IT systems.

By 2022, the company will electrify the entire portfolio of Mercedes, offering at least one electrified alternative in all segments from smart to large SUVs. It will have more than 50 electrified vehicle variants, while supporting the development of plug-in hybrids and the introduction of 48-volt-systems.

The first EQ series model, EQC, start production in 2019 in Bremen, Germany.

In total, Daimler will invest US$1.18 billion (NZ$1.49b) in its battery production network, which will also include production facilities in Germany and China.