Mercedes-Benz will spend $1 billion to build electric vehicles in the US

Daimler AG, the mother or father company of Mercedes-Benz, plans to offer electrified versions of all of its cars by 2022 underneath the new EQ sub-brand. And now the company has announced that lots of these might be inbuilt america.

To do that, Daimler is pouring $1 billion into the 20-year-old manufacturing unit the corporate runs just outdoors Tuscaloosa, Alabama. A 1-million-square-foot enlargement can be added, with development starting in 2018 and car manufacturing anticipated to start out in the early 2020s. Daimler continues to be hashing out details with the native governments, but the transfer is predicted to create about 600 new jobs. Until now, the company had only constructed electric automobiles in its house nation, according to Automotive News.

The Mercedes-Benz plant in Alabama principally builds SUVs, so the corporate will give attention to producing the electrified variations of those automobiles. And it’s essential to recollect here that “electrified” doesn’t necessarily mean “all-electric.” While some automobiles constructed on the Tuscaloosa plant will doubtless be all-electric, “electrified” refers to something that makes use of an electric motor, which means hybrids are included in that time period as properly.

Mercedes may also construct batteries in another new addition to the power. That may give the company beneficial proximity to the car production line, but in addition might help it compete with Tesla in another new part of the power market that it’s been testing recently: home batteries.

Daimler is just not the first major automaker to make an enormous push for electric automobiles. Ford announced a $4.5 billion investment into EV production again in 2015, Volkswagen announced a similar effort one year later whereas underneath strain for its emissions scandal, and many other automakers have since followed go well with as countries across the world move to ban or reduce the number of automobiles powered by fossil fuels. But there’s an extended option to go to succeed in that objective. Mixed, electrical and hybrid automobiles made up just under 3 percent of cars sold in the US in 2016.



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