Mercedes is set to invest billions of dollars on Electric Vehicles plants in China, Germany, and Hungary in the coming years, a report from Automobilwoche magazine reported on Sunday.
The report stated that the carmaker is preparing to create electric vehicles only and to cut emissions. The European Union has set a goal of decreasing the CO2 emissions by 50 percent per passenger car over the life cycle by the end of the decade, according to Reuters.
It is also seeking an agreement on a 2035 deadline to stop fossil fuel cars from going on sale. Mercedes said that it is ready to go electric by 2030 if the market conditions allow.
The production manager, Joerg Burzer, said “we are investing a three-digit million amount per plant for the run up,” more investments should follow in the China, Germany, and Hungary plants.
The company will start working on the Rastatt plant in Germany over the next months to produce the first model of the compact vehicle platform MMA from 2024.
Mercedes will also invest in modernising the painting systems in its plants in Sindelfingen, Bremen and Rastatt.
The modernisation of these plants has a goal of cutting energy and water consumption as well as the painting system’s reliance on gas.
According to the magazine the company might also be planning on expanding it U.S. plant in Tuscaloosa to benefit from government subsidies.