The collaboration between the plant and the research and development departments will create conducive conditions for the further development and production of the latest technologies, the company said.

The electric engine is a transmission-integrated version, i.e. the electric engine is built in as part of the automatic transmission and can develop an engine power of 15kW and more. According to the company, it boosts performance by interacting with the combustion engine and lowers consumption by recovering energy during braking.

A hall with a surface area of 4,000sqm is currently being converted for the new scope of production at the Berlin plant. The company is to invest around EUR40m in total in the development and production of the new engine.

The necessary machinery and equipment is about to be set up in the new production buildings by early 2011. A total of 50 employees will be involved in the development and production of these electric engines at the site. The engines are expected to be used in Mercedes-Benz hybrid vehicles from 2012 onwards.

The Berlin plant currently produces V6 and V8 diesel engines and V12 biturbo engines for the Mercedes-Benz and Maybach brands. It also focuses on product development and production in the area of components and parts.

With this decision, Mercedes-Benz Cars is continuing its strategy of building up technology for the electrification of drive systems as a core competence, also in production.

As part of this strategy, Daimler has also taken on a role in the development and production of battery cells and the future manufacture of lithium ion battery systems in two joint ventures with Evonik Industries.