The production lines at the Mercedes-Benz plant located in Vitoria (Álava) currently produce the V-Class and Vito vans , but their future was up in the air since, like other manufacturers, Mercedes has numerous factories in the process of transformation to prioritize the medium and long-term production of new electric models.
Now, the majority of the workforce at the Alava facilities has accepted the terms of a new collective agreement that will be in effect until 2026 and which, according to union officials, brings the Basque factory an investment of around 1.230 billion euros , which would ensure its future for the next decade.
Doubling production with electric vans
The new mobility requirements and the necessary compliance with emissions quotas are leading all ranges of the main manufacturers to an accelerated electrification process , and the three-pointed star brand has been demonstrating this in the most recent innovations within its passenger car range, but it is an equally inevitable process in the commercial vehicle division , where the Vitoria factory occupies a leading position in Europe.
The social peace that has now arrived at this factory, after a year and a half of negotiations, will imply, according to the workers' representatives, the creation of more than 400 permanent contracts —almost 5.000 workers are employed at the plant— and the activation of a new strategic plan with significant investments of more than 1.200 billion euros, with the fundamental objective of manufacturing electric vans at the Alava plant and doubling its production capacity to 300.000 units in the long term.
Side effects for a new battery factory
The current range of Mercedes Vito and V-Class vehicles produced in Vitoria is enjoying good commercial health — in 2022 the company expects to assemble 158.000 vehicles — with significant exports to major markets and planned investments will also allow for extending the life of the vans with combustion engines , but in a second phase the range will be renewed, with new electric models or those that can use alternative and sustainable fuels.
It's also important to remember that Mercedes Vitoria is part of the Basquevolt project , an initiative promoted by the Basque Government to advance the development of solid-state batteries for electric vehicles, in which other companies such as CIE Automotive, Enagás, EIT InnoEnergy, CIC energiGUNE, and Iberdrola participate . The Álava plant is the second largest van assembly plant and provides approximately 30.000 indirect jobs through its supplier network, so future investments will also help solidify the initiative for solid-state battery production starting in 2027.