Mercedes-Benz is not only talking about electric car concepts and show models anymore. The German automaker is increasingly securing manufacturing capacity at its existing plants in order to produce its upcoming EQ electric vehicles.

The company announced today that it reached a deal with the management and works council of the Mercedes-Benz plant in Rastatt in order to build ‘compact electric vehicles’ at the factory.

Markus Schäfer, Member of the Divisional Board of Mercedes-Benz Cars for Production and Supply Chain, made the announcement:

“Our Mercedes-Benz car plants in Germany play a decisive role in electric mobility. They are centres of competence for the production of EVs in the global production network of Mercedes-Benz Cars. Thanks to highly flexible structures, we are able to integrate electric vehicles in the regular series production in our plants. At the same time, we are increasing our competitiveness with the efficient integration of Industry 4.0 applications. This allows us to benefit from the opportunities of electric mobility, while considerably reducing the required investment,”

Rastatt is Mercedes-Benz’s biggest plant for compact vehicles. It employs 6,500 people and it manufactures 300,000 vehicles per year.

The company plans to shift some of that production capacity to electric vehicles.

Thomas Geier, Site Manager of the Mercedes-Benz Rastatt plant, commented on the announcement:

“With the new declaration of intent, we are shaping our future, thereby creating good prospects for our workforce in the coming age of electric mobility. The Mercedes-Benz plant in Rastatt will be the centre of competence for the production of new compact EQ models. In the year of our 25th anniversary, this is great news for our highly motivated workforce,”

They didn’t confirm what electric car will be produced at the plant beyond saying that it will be “compact electric vehicles”.

Earlier today, we reported on reports that Mercedes plans to unveil a relatively affordable all-electric hatchback with long range at the Frankfurt motor show in September.

The vehicle would be under the EQ brand and therefore, it’s likely to be the one to be produced under this deal at the Rastatt plant.

FTC: We use income earning auto affiliate links. More.

Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.