Mercedes-Benz announced that its Hambach plant in France (currently used for the production of smart fortwo cars) will be expanded to add production of the new, all-electric compact EQ model.

Mercedes EQA CES 2018

The investment in the plant and in the product will be around €500 million ($589 million). Hambach is a wise choice due to its previous experience with BEVs due to current fortwo production.

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For Daimler, this will mark the sixth place in the world scheduled for EQ vehicle production, leading to more than 10 models arriving by 2022. The German manufacturer predicts that 15 to 25% of unit sales will be electric by 2025.

Which model will find its home at the Hambach site was unspecified, however, Mercedes did say it will be compact. We already expected the EQA compact model production to come from Rastatt in Germany, so maybe there will be two compact-sized models. Mercedes's recent statement is included below: