Mercedes developing €135 million e-vehicle engine factory in Romania

Construction works have kicked off at Sebes in central Romania for the e-vehicle factory where Star Assembly and Star Transmission, the local divisions of Mercedes-Benz AG, will produce electric motors for the new line of cars with EQ batteries starting in 2024.

For this investment, the German group was granted RON 185 million (€37 million) in state aid. The total value of the investment, including the production equipment, amounts to RON 674 million (€135 million), according to the data published by the Ministry of Finance.

Mercedes group has already invested nearly €600 million in production capacities, notably a gearbox factory in Sebes.

Eight-speed dual-clutch automatic gearboxes, as well as nine-speed transmissions for Mercedes-Benz, are assembled at Star Assembly.

The Daimler Group has, through its two subsidiaries in Romania, Star Transmission Cugir and Star Assembly Sebeş, more than 3,000 employees.

Last summer, Star Assembly representatives commented “the production units in Romania, in Sebeş and Cugir, are an important part of the production network of Mercedes-Benz cars globally. Factories are now fully utilized.” The company also said it was looking to change the production portfolio of its plants.