Mercedes-Benz AG Plans to Adjust Global Production

Mercedes-Benz AG Plans to Adjust Global Production

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To streamline production, the company is exploring the sale of car assembly plant in Hambach, France

The transformation plans for Mercedes-Benz AG focus on streamlining its global production network and adjust current capacity to prevailing market conditions in the coming years. The commitment to CO2 neutral mobility means the company is focussing on the electrification of its product range and increase digitisation of vehicles and processes. Numerous measures to sustainably improve its cost structure and become significantly more efficient also include intending to sell off its car assembly plant in Hambach, France. Associated valuation effects of fixed assets will lead to a negative one-off effect from restructuring measures in the middle three-digit million amounts in the second quarter at Mercedes-Benz AG.

The company does not expect the devaluation to have any impact on the Free Cash Flow of its industrial business. Additional burdens may arise in the course of negotiations. Markus Schafer, Member of the Board of Management of Daimler AG and Mercedes-Benz AG, responsible for Daimler Group Research and Mercedes-Benz Cars COO stated “The transformation to the CO₂-neutral mobility of the future also requires changes in our global production network. In this phase of economic challenge, we are balancing demand and capacity and we are now adjusting our production network. These changes also affect the Hambach plant. An important goal for us is to secure the future of the location. Another condition: The current smart models will continue to be produced in Hambach”. The next generation of smart electric vehicles will be produced by the joint venture smart Automobile Co. Ltd. in China. This is a joint venture of Mercedes-Benz AG and the Zhejiang Geely Group (Geely Holding).