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Mercedes-Benz plant in Vitoria. F. P.
Mercedes-Benz invests 1 billion euros in Spanish factory to manufacture new electric vans
Motoring

Mercedes-Benz invests 1 billion euros in Spanish factory to manufacture new electric vans

In 2023, the German company decided that new mid-size electric vans will be produced at the Alavesa plant from 2026

Motor Channel

Monday, 1 April 2024, 06:56

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Major automotive brand Mercedes-Benz has invested one billion euros in its plant in Spain's north in a bid to start manufacturing new electric vans.

The money will also go towards refurbishments of its plant in Vitoria-Gasteiz in the Basque region expanding its current 696,000-square-metre site to 800,000 square metres. This will help the marque to start manufacturing its new electric vans from 2026, a project which, according to the German multinational, "guarantees the long-term viability" of the Spanish factory in Alava and "ensures the employment of its 5,000 workers for the coming years".

The Vitoria plant plans to achieve totally carbon neutral production in the manufacturing process and across its facilities by 2039. The Mercedes factory in the regional capital of Alava generates employment for 5,000 people and around 30,000 indirect jobs, and involves 800 automotive part suppliers throughout the country.

Last week, the company presented the proposal at its plant in Vitoria to produce the new medium-sized vans based on new modular and scalable electric technology from 2026. The event was attended by Spanish President Pedro Sánchez; Basque Country leader Iñigo Urkullu; as well as German representatives including the leader of the Mercedes-Benz vans division Mathias Geisen.

Pedro Sánchez during the visit to the Mercedes-Benz factory in Vitoria.
Pedro Sánchez during the visit to the Mercedes-Benz factory in Vitoria. F. P.

In 2023, Mercedes-Benz decided that new mid-size electric vans will be produced at the Alavesa plant from 2026. Expansion work and the construction of new production buildings at the factory, which began in 2023, is expected to be completed by 2025.

Geisen said Mercedes-Benz Vans "aspires to be a leader in electric driving and digital experience". He said that the event "marks the beginning of a new era" for the company.

According to Mercedes-Benz Vans Vitoria CEO Bernd Krottmayer, Mercedes-Benz Vans Vitoria "is moving forward in its transformation to an all-electric future, guaranteeing the future development of the entire production network while securing the location of the plant in Vitoria in the long term".

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