The town is located south of Berlin in the district Teltow-Fläming on the plateau of Teltow.

Ludwigsfelde is one of the sister towns of football club, Hertha BSC Berlin.

In 1952 the factory was refounded as the VEB Industriewerke Ludwigsfelde, which made various products including heavy machinery and Multicar small trade vehicles.

For a brief period the plant made Pirna jet engines for the ill-fated Dresden 152 airliner.

In the 1990s the factory made T2 and Vario vans, and then at the end of the decade DaimlerChrysler modernised the plant to produce the Mercedes-Benz Vaneo.