Germany’s Daimler has announced that its brand Mercedes-Benz “will be ready to go fully electric by the end of the decade, when market conditions allow it”.
It’s the latest sign of how big car firms are preparing for a future based on electric vehicles. According to Daimler, from 2025 all “Mercedes-Benz newly launched vehicles will be exclusively electric”.
Mercedes is only going to make electric cars before the decade is out to compete against Tesla REUTERS / Joshua Lott
Breaking things down Daimler has explained that it plans to launch three purely electric ranges that year: the MB.EA, which will refer to medium and large passenger cars; AMG.EA, which will focus on high-performance vehicles; and VAN.EA, for light commercial vehicles and vans. All of them will be completely electric.
As of 2025, lConsumers will also have the option of purchasing an “all-electric alternative for each model that the company manufactures.”
“The shift towards electric vehicles is accelerating, especially in the luxury segment, to which Mercedes-Benz belongs. “Ola Källenius, who runs both Daimler and Mercedes-Benz, said in a statement.
“The tipping point is getting closer and closer and we will be prepared for markets to go exclusively electric by the end of this decade,” he added. “This step marks a profound reallocation of capital. ”
In light of his plans, Daimler stated that Mercedes-Benz will increase its research and development. “In total, investments in battery electric vehicles between 2022 and 2030 will amount to more than 40 billion euros.”
Together with global partners, Mercedes will also seek to establish eight gigafactories to build the power cells you need for your vehicles. This would complement plans to develop nine plants focused on the development of battery systems.
Daimler added that Mercedes-Benz intends to “partner with new European partners to efficiently develop and produce future cells and modules.– a step that ensures that Europe remains at the center of the automotive industry even in the electric age. “
The electric car, the business of the 21st century
Low and zero emission transport is considered a crucial tool for large economies that try to reduce their environmental footprint and decrease air pollution.
The government of United Kingdom, for example, you plan end the sale of new diesel and gasoline cars and vans by 2030 and require that, starting in 2035, all new cars and vans have zero tailpipe emissions.
On the other hand, the European Commission, the executive arm of the EU, aims to reduce CO2 emissions from cars and vans by 100% by 2035. In this context, many companies in the automotive sector have announced plans to expand their offering of low- or zero-emission vehicles.
Earlier this month, for example, The Volkswagen Group said that half of its sales were expected to be battery electric vehicles by 2030. By 2040, the company said that nearly 100% of its new vehicles in major markets should be zero-emission.
Volkswagen is not teaming up with Tesla
In March, the CEO of the Volkswagen Group dismissed the idea that his company could join forces with Tesla, telling CNBC that the German car giant was looking to go its own way.
Speaking to “Squawk Box Europe”, Herbert Diess was asked if he would rule out any future deals with electric car maker Elon Musk, andn which VW could make its cars, or whether the Tesla and VW brands would ever get together.
“No, we have not considered [eso], we go our own way, “he replied.”We want to get closer and then get ahead of ourselves. We think we can: we need our own software, our own battery, and generally our own technology, “he added.” And also, I think Tesla and Elon Musk are thinking their way out on their own. So no, there are no talks between Elon Musk and me about joining forces. “