Mercedes-Benz is taking the next step in the modernisation of Untertürkheim, its lead plant for powertrain production worldwide.

With a joint agreement, company and works council are creating the framework for further growth of conventional powertrains while preparing for electric mobility at the same time. The agreement has long-term effects for safeguarding the employees at the site and gives the transformation of the tradition-rich plant in the Neckar Valley a new aspect in terms of electric mobility.

“We shape the future in the powertrain production of Mercedes-Benz Cars by establishing ground-breaking production technologies in the lead plant Untertürkheim. This is a further step to ensure our competitiveness in the new age of electric mobility,” said Markus Schäfer, head of production and supply chain management.

Part of the agreement is a new e-technology centre where prototypes for electric powertrains will be constructed. The so called E-Technikum will become the ramp-up factory for key technologies. The plant will also make first steps in the assembly of electrified powertrain modules and start producing components for electric vehicles. At the same time, the agreement paves the way for a further capacity expansion of combustion engines, eg for the new generation of high-efficiency in-line engines. The production of engines, transmissions and axles will remain an integral part of the Untertürkheim product range. The foundry at the site Untertürkheim will also produce components for future engine generations. To make space for electric mobility components, products such as fuel system components and turbine housings will be relocated. The employees affected by the relocation will be offered equivalent jobs primarily in similar areas or in electric mobility.

With the agreement the company and works council updated a joint transformation plan from the year 2015. The so called Zukunftsbild was a framework for the Untertürkheim plant and its employees towards higher flexibility and efficiency. It included also the transformation of the plant into a high-tech location for CO2 technologies comprising the production of high-efficiency combustion engines, plug-in hybrid powertrains and locally emission-free driving with fuel-cell technology.

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