Mercedes to reduce production capacity in Germany
- After Volkswagen announced that it wanted to reduce its production capacity in Germany by 734,000 vehicles per year, it is now Mercedes' turn to announce that it wants to reduce its own by 100,000 units, still in Germany, probably in Rastatt , where the A-Class, B-Class, GLA and EQA are produced, as the carmaker has announced that it will cease production of the A-Class and B-Class at the end of 2025.
- Mercedes' current production capacity in Germany is one million vehicles per year, distributed as follows: 350,000 in Bremen, 250,000 in Rastatt, 250,000 in Sindelfingen and 150,000 in Düsseldorf. The Rastatt site is therefore expected to increase from 250,000 to 150,000 vehicles per year from 2026. The total Mercedes GLA and EQA were produced in 2024 at 148,665 units, compared to 152,495 in 2023, but the carmaker does not rule out transferring part of this production to its Hungarian plant in Kecskemét where manufacturing costs are 70% lower according to it . In any case, the carmaker plans to reduce its workforce in Germany, without announcing the exact number. Mercedes also announced that it is transferring part of its German car production to its American plant in Tuscaloosa, specifically the production of models destined for the United States, in order to avoid the increase in customs duties on European imports decided by Donald Trump , which is expected to reach 25%.
- Finally, with Mercedes Group's global BEV sales down 23.1% in 2024, the carmaker announced that it was abandoning the idea of selling 100% electric vehicles by 2030, and that it would launch more petrol and diesel cars than 100% electric cars over the next five years, thus encouraging the transfer of part of the customer base from electric to thermal. Other carmakers have announced plans to follow this same strategy.