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2027 Mercedes-Benz GLA Enters Production in Rastatt With New Hybrid and Electric Powertrains

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Mercedes-Benz has officially started series production of the new-generation GLA at its Rastatt plant in Germany, marking another major step in the company’s transformation of its compact vehicle production network. The new GLA is being manufactured alongside its fully electric counterpart, while advanced hybrid versions using 48-volt technology are scheduled to join production later in 2026.

The latest GLA represents more than a new addition to Mercedes-Benz’s compact SUV lineup. It is also a showcase for the company’s increasingly digital manufacturing strategy, combining flexible production systems, artificial intelligence, digital twins and the Mercedes-Benz Operating System, or MB.OS.

New Mercedes-Benz GLA production begins in Rastatt

The Mercedes-Benz Rastatt plant has been producing compact models since 1992 and has become one of the company’s most important manufacturing locations for vehicles in this segment.

Around 7,000 people work at the site, making it the largest employer in the surrounding region. The plant is designed around a flexible production philosophy, allowing vehicles with different propulsion technologies to be built on the same production line.

That capability is particularly important as Mercedes-Benz continues to transition between combustion engines, hybrids and fully electric vehicles.

The new GLA is currently being produced in Assembly Hall 4.0. Mercedes-Benz plans to move production of the model into the neighbouring Assembly Hall 4.1 from 2027, with the company investing a low-three-digit-million-euro sum in the conversion.

Michael Schiebe, Mercedes-Benz board member responsible for Production, Quality and Supply Chain Management, said the launch reinforces Rastatt’s importance within the company’s global production network.

He also highlighted the increasing role of digital technologies, with MB.OS, artificial intelligence and the company’s MO360 production ecosystem integrated into the manufacturing process.

Mercedes-Benz GLA production uses digital twins

One of the most interesting aspects of the Rastatt transformation is Mercedes-Benz’s use of digital twins.

Before physical construction work begins, engineers can recreate production facilities and manufacturing processes in a highly detailed virtual environment. This allows the company to simulate production lines, identify potential problems and optimise processes before equipment is installed.

Mercedes-Benz says the technology has already helped accelerate the conversion of Assembly Hall 4.0, which was completed in record time in 2023.

The same approach is now being used for Assembly Hall 4.1, with the goal of reducing both construction time and costs.

For Mercedes-Benz, digital manufacturing is becoming increasingly important as vehicle architectures become more complex and production must accommodate several powertrain technologies simultaneously.

New GLA combines electric and hybrid production

The new Mercedes-Benz GLA is being introduced with multiple propulsion technologies, reinforcing the company’s strategy of maintaining flexibility during the transition toward electrification.

The fully electric GLA is already in production at Rastatt, while hybrid versions equipped with 48-volt technology and a new-generation internal-combustion engine will follow later this year.

Building different versions of the same model on a common production line gives Mercedes-Benz greater flexibility when responding to changes in customer demand.

Instead of dedicating an entire factory exclusively to electric vehicles or combustion-powered models, Rastatt can adjust its production mix according to market requirements.

That flexibility is becoming increasingly valuable as the global automotive industry moves through a period in which electric vehicles, hybrids and combustion engines continue to coexist.

MB.OS brings software deeper into GLA production

Software is another major component of the new GLA.

Mercedes-Benz is integrating its MB.OS operating system into the vehicle from the production stage. The company describes MB.OS as a chip-to-cloud architecture designed to simplify the vehicle’s electronic and software infrastructure.

Rather than relying on numerous individual hardware modules for software distribution, the system uses a central server in the Mercedes-Benz Intelligent Cloud.

This approach means vehicles can leave the production line with the latest available software and provides the technological foundation for future software updates and digital services.

The new GLA also introduces advanced interaction technology, including the MBUX Virtual Assistant with generative artificial intelligence.

The objective is to make interaction with the vehicle more natural, allowing occupants to communicate with the car using conversational language rather than relying exclusively on conventional menu structures and commands.

Mercedes-Benz GLA electric components come from Germany

Although final assembly takes place in Rastatt, the new GLA is the product of a broader Mercedes-Benz manufacturing network across Germany.

Electric drive units and axles are supplied by the company’s Untertürkheim operations, including production sites in Mettingen and Hedelfingen.

An electric drive unit incorporates three fundamental elements: an electric motor, power electronics and the transmission system responsible for transferring power to the wheels.

Mettingen is also responsible for assembling complete electric axles, which are then delivered to Rastatt for vehicle production.

The high-voltage batteries are supplied by Mercedes-Benz subsidiary Accumotive from Kamenz in Saxony.

Accumotive has more than a decade of experience in battery manufacturing and is described by Mercedes-Benz as one of the company’s centres of excellence for high-voltage battery systems.

The company operates within Mercedes-Benz’s wider global battery production network, which spans three continents.

Kuppenheim supplies body components for the new GLA

Another important link in the GLA production chain is located just 10 kilometres from Rastatt.

The Mercedes-Benz Kuppenheim site has supplied body-in-white components, structural components and body parts to Rastatt since 2009. It is now also supporting production of the new GLA.

Since the beginning of 2026, Rastatt and Kuppenheim have been more closely integrated from an organisational perspective, with Kuppenheim becoming part of the Mercedes-Benz Rastatt plant.

The closer connection between the two sites is designed to strengthen production efficiency and coordination.

New Mercedes-Benz GLA gets a sportier design

Beyond its manufacturing technology, the new Mercedes-Benz GLA brings a substantially revised exterior and interior design.

The latest model adopts a lower silhouette and longer wheelbase, giving the compact SUV a sportier stance. One of its most distinctive elements is the illuminated Mercedes-Benz grille, which gives the front end a more recognisable appearance, particularly at night.

Mercedes-Benz has also redesigned the interior around increased digitalisation and improved practicality.

A large MBUX Superscreen dominates the dashboard, while higher-quality materials and a redesigned cabin aim to increase the perceived sophistication of the compact SUV.

The available panoramic roof adds to the feeling of space, while the longer wheelbase is intended to improve interior room and everyday versatility.

MBUX Virtual Assistant adds generative AI

The new GLA is also part of Mercedes-Benz’s broader move toward artificial intelligence inside the vehicle.

The MBUX Virtual Assistant incorporates generative AI technology to provide more natural interaction between driver and vehicle.

Instead of requiring drivers to navigate through conventional menus, the system is designed to understand more conversational requests and provide personalised assistance.

This represents another step in the evolution of Mercedes-Benz’s MBUX infotainment system, with software increasingly becoming as important to the vehicle experience as traditional mechanical hardware.

Rastatt becomes a key Mercedes-Benz compact-car hub

The launch of the new GLA further strengthens Rastatt’s position within Mercedes-Benz’s global production network.

The plant is now producing vehicles based on the company’s latest generation of technology while simultaneously supporting multiple propulsion concepts.

That combination of flexible manufacturing, digital production technologies and vertically integrated component supply is becoming increasingly important for Mercedes-Benz as the company adapts to changing global demand.

The ability to produce electric, hybrid and conventional vehicles within the same manufacturing environment gives Rastatt a significant degree of operational flexibility.

For the employees at the site, the GLA launch also represents a major investment in the plant’s future.

Torsten Höink, Chair of the Works Council at Mercedes-Benz Rastatt, described the start of production as an important new chapter for the facility and emphasised the role of innovation, expertise and teamwork in its long-term development.

The new GLA marks a new era for Mercedes-Benz

The start of production of the new Mercedes-Benz GLA is significant for reasons that extend well beyond the compact SUV itself.

It demonstrates how Mercedes-Benz is reshaping its manufacturing operations around a mixed powertrain strategy while simultaneously increasing the importance of software, artificial intelligence and digitally managed production.

With electric, hybrid and conventional technologies being accommodated within a flexible manufacturing environment, the Rastatt plant is effectively being prepared for an automotive market that remains in transition.

At the same time, the new GLA itself moves further into the digital era with MB.OS, the MBUX Superscreen and a generative-AI-powered virtual assistant, while its redesigned exterior and interior give Mercedes-Benz’s compact SUV a more distinctive and sophisticated character.

As production expands into Assembly Hall 4.1 from 2027, the GLA will become an even more important part of Rastatt’s next chapter — and another example of how Mercedes-Benz is combining traditional German manufacturing expertise with software-driven vehicle technology.

Source: Mercedes-Benz

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BMW Regensburg Plant Produces Nine Millionth Car as Electric iX1 Marks 40 Years of Production

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BMW’s Regensburg plant has reached a major production milestone, building its nine-millionth vehicle since opening in 1986. The landmark car is a fully electric BMW iX1 finished in Velvet Orchid II Metallic, produced for a customer in Sweden. The achievement also coincides with the plant’s 40th year of vehicle production, highlighting how dramatically BMW’s European manufacturing operations have evolved.

BMW’s Regensburg factory has spent four decades building everything from the E30 3 Series to today’s electrified crossovers. Now, the plant has reached nine million vehicles, and the milestone car is a particularly fitting example of BMW’s changing production strategy: an electric crossover, painted in a bespoke BMW Individual color, built on the same production line as gasoline and plug-in hybrid models.

The nine-millionth vehicle, an BMW iX1, was built to the specifications of a Swedish customer. Its Velvet Orchid II Metallic finish comes from BMW Individual, the company’s personalization program, giving the milestone car a color that is unlikely to blend into a typical dealership parking lot.

From the E30 3 Series to BMW’s Electric Crossovers

Regensburg began automobile production in 1986 with the BMW 3 Series E30. At the time, BMW’s agreement with the city called for an output of 400 vehicles per day and the creation of 3,500 jobs.

Four decades later, the scale is considerably different. In 2025, the plant was operating across three shifts, with a new vehicle leaving the assembly line approximately every 57 seconds. That production rate helped establish Regensburg as BMW’s highest-volume plant in Europe, with approximately 356,000 vehicles delivered worldwide during 2025.

The workforce has expanded alongside production. Today, approximately 9,000 employees work across the Regensburg and Wackersdorf sites, a substantial increase from the factory’s early years.

One Production Line, Multiple Powertrains

Regensburg’s current lineup is centered primarily on the BMW X1 and BMW X2 crossover models. What makes the factory particularly significant is that gasoline, plug-in hybrid, and fully electric versions are manufactured on the same production line.

That flexibility allowed BMW to produce more than 150,000 electrified vehicles at Regensburg in 2025, without requiring the plant to stop or separate production of internal combustion engine models.

The approach is increasingly important as automakers transition toward electrification. Rather than relying exclusively on dedicated electric vehicle factories, BMW is using flexible manufacturing systems that can adapt to changing customer demand across different powertrains.

In practical terms, Regensburg can build an electric iX1 alongside conventionally powered X1 models, allowing BMW to adjust production according to market conditions without completely reorganizing its manufacturing footprint.

Nine Million Cars—and a Milestone Built to Order

BMW says the Regensburg plant had surpassed 8.7 million vehicles by the end of 2025, before reaching the nine-million mark in September 2026, during its 40th year of operation.

The company has not disclosed exactly how many of those nine million vehicles were 3 Series models, although the model has played a major role in the plant’s history. The factory’s production story began with the E30, and the 3 Series continued to contribute significantly to its output over the decades.

The milestone vehicle itself reflects another important change: customers increasingly expect personalization, even from mass-produced vehicles. Through BMW Individual, the Swedish buyer was able to specify Velvet Orchid II Metallic rather than selecting from the standard color palette.

That means the nine-millionth car was not simply pulled from existing inventory. It was built according to a customer order, making the production milestone both a factory achievement and a personalized delivery.

Why the Regensburg Milestone Matters

The significance of BMW’s nine-millionth vehicle is not limited to the number itself. The iX1 represents the production philosophy BMW is increasingly applying across its manufacturing network.

Regensburg demonstrates that a modern factory does not necessarily need to be dedicated exclusively to electric vehicles to support BMW’s electrification strategy. Instead, it can manufacture different powertrains on one line while maintaining high output.

That is particularly relevant for crossovers based on front-wheel-drive architectures, which remain an important part of BMW’s global lineup. The X1 and X2 families give the company a platform for offering gasoline, plug-in hybrid, and electric variants without requiring entirely separate manufacturing systems for every version.

At the same time, BMW is introducing new architectures designed primarily around electric powertrains. Regensburg’s flexible production model provides a bridge between those approaches, allowing the company to continue building combustion-engine vehicles while expanding its electric portfolio.

BMW Regensburg Production Milestone: Key Facts

  • Plant: BMW Regensburg, Germany
  • Production began: 1986
  • First model: BMW E30 3 Series
  • Nine-millionth vehicle: BMW iX1
  • Milestone color: Velvet Orchid II Metallic
  • Customer: Sweden
  • Production milestone: September 2026
  • 2025 annual output: Approximately 356,000 vehicles
  • 2025 electrified production: More than 150,000 vehicles
  • Current lineup: Primarily BMW X1 and X2
  • Powertrains: Gasoline, plug-in hybrid, and fully electric
  • Workforce: Approximately 9,000 employees across Regensburg and Wackersdorf

Source: BMW

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Volkswagen Winds Down ID.3 Production in Dresden—But the Transparent Factory Isn’t Going Dark

Volkswagen is preparing to halt production of the ID.3 hatchback at its iconic Transparent Factory in Dresden later this month, marking the first time the glass-walled showcase plant will be without a vehicle on its assembly line since opening. But while the factory’s pristine floors will soon be free of EVs, VW insists the site’s future is far from empty.

The move is part of VW’s broader effort to streamline EV manufacturing across Germany. With volume ramping up elsewhere, Dresden’s low-throughput, high-visibility setup became an increasingly tough fit for the company’s tightening cost structure.

Initially, the wind-down looked bleak: VW planned to keep just 135 roles at the facility. But in a rare bit of good-news restructuring, the company revised that number upward earlier this year. After a site visit from VW brand chief Thomas Schäfer and works council chair Daniela Cavallo, the retained workforce climbed to 155 positions, out of roughly 250 current employees.

Still, VW is hoping some staff will choose to leave voluntarily—and it’s putting real money behind that hope. Workers willing to relocate to the company’s Wolfsburg headquarters, nearly 300 kilometers away, were offered a €30,000 signing bonus. The figure might sound generous, but according to German outlet Handelsblatt, the proposal was met with boos during a staff meeting presentation—an indication of how emotionally charged the factory’s transformation has become.

From Assembly Line to Innovation Engine

While no vehicles will roll out of the Transparent Factory—at least for the foreseeable future—the building isn’t losing its purpose. Instead, VW is repositioning the site as a technological nerve center.

In partnership with TU Dresden, the facility will become home to a new innovation campus, pivoting from vehicle assembly to high-level research. The academic-industrial collaboration aims to advance fields such as:

  • Artificial intelligence
  • Microelectronics and chip design
  • Materials science
  • Robotics
  • Circular economy technologies

VW Saxony managing director Thomas Edig didn’t mince words when describing the ambition, calling the project an opportunity for the site to become “the Stanford of the East.”

Half of the building will be leased by TU Dresden, and VW plans to fund research contracts to support ongoing projects. It’s a stark departure from test drives and customer delivery centers—but arguably a more future-proof one.

Job Security Amid Transition

For workers staying in Dresden, VW has laid out long-term assurances. Staff there are guaranteed employment through 2030, and beginning in early 2026, they’ll be included in VW’s collective bargaining agreement—bringing higher wages and improved terms.

It’s an unusual chapter for the Transparent Factory—a site purpose-built to showcase the elegance of German automotive production, now pivoting toward the silicon-and-software frontier. As VW retools its EV strategy and the global auto landscape shifts, Dresden’s glass box is set to reflect a different kind of innovation.

A factory without cars, perhaps. But definitely not without purpose.

Source: Handelsblatt