Mercedes-Benz has announced that it will be investing 500 million euros in building a new electric compact car at the Hambach plant in France. Daimler AG already produce the smart series of cars there, with existing expertise in electric platforms with the current smart EQ fortwo. The new compact car will belong to Mercedes-Benz EQ series as well.
“20 years ago we started an exemplary German-Franco project with the production of the smart in Hambach. Now we take the next step and for the first time in our more than 100-year old history we bring the production of Mercedes-Benz to France. With the compact EQ model from Hambach we continue our electric initiative,” said Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars after a meeting with the French President Emmanuel Macron at the Élisée Palace in Paris.
The investment will cover plant modifications and upgrades as well as going towards the development of the new car. This fits in with the company’s aim of rolling out ten electric cars by 2022 and meeting its target of hitting between 15 and 25% of all car sales in 2025 being electric cars. At the same time, smart will become an electric only brand by 2022.
The plant investment itself will go into a new body shop and surface treatment and expansion of the assembly line.