Mercedes-Benz is adjusting its factory network to produce a new range of luxury electric vehicles as it prepares to switch to the electric version by the end of the decade.

According to foreign media, the Telegraph reports, Mercedes aims to halve CO2 emissions per passenger car during the life cycle by the end of this decade compared to 2020.

"We are ready for the rapid escalation of electric vehicle volumes," said Joerg Burzer, board member for the production and supply chain, adding that the new structure followed talks between managers and workers' representatives.

Factories in Sindelfingen, Bremen, Rastatt - all in Germany - and Kecskemet, in Hungary, will start producing new models in key luxury, base luxury and luxury segments entering the mid-decade, Mercedes said.

The battery systems will be supplied by a production network with factories on three continents, he said.

"Local production of battery systems is a key success factor for Mercedes-Benz's electric launch and a crucial component to being able to meet global demand for electric vehicles flexibly and efficiently," a statement said.