Daimler will commit 60 billion euros ($A97 billion) to “become fully electric before the end of the decade – wherever market conditions permit,” according to a new announcement from the German auto kingpin.
By 2025, Daimler says it wants to achieve a target of 50 per cent of new sales consisting of either fully or partially electric vehicles. Five years later its offerings will be fully electric.
Key to its electrification will be implementing measures to increase efficiency and lower fixed costs, with increasing revenues per vehicle sold bolstering the coffers.
This is a hint that the company will focus on larger, high-quality, high-margin vehicles such as its upcoming Merceded-Benz EQS premium electric sedan – along with a “gradual shift” towards online sales.
Mercedes-Benz intends to reduce capital expenditures as well as research and development expenditures by 2025 “by more than 20 perch ent compared to 2019 and further reduce them beyond 2025”, it said.
The priority is on spending on research and development “for the electrification of the product portfolio as well as further digitization and the next steps towards automated driving,” said Daimler.
CEO Ola Källenius also underscored the importance of its van business in its electrification goals.
“Our goal is technological leadership in the automotive luxury segment and in the area of premium vans while remaining committed to our ambitious margin targets,” he said.
Daimler, which launched a number of e-vehicles on the market in 2021 , is also assuming that the costs of electric vehicles will fall due to standardized battery platforms and advances in battery technology, among other things. According to the car manufacturer, the proportion of battery costs in the vehicle is expected to decrease significantly by 2030.
Since December 1, Daimler Truck – the truck and bus business – and Mercedes-Benz AG – passenger cars and delivery vans – have been two independent companies.
Daimler Truck, headquartered in Leinfelden-Echterdingen near Stuttgart, wants to go public on Friday and is aiming for inclusion in the 40-company blue-chip German stock index Deutsche Aktienindex (Dax) in the first quarter of 2022.
In Australia on Thursday, Mercedes-Benz’s local arm announced it will begin selling electric vans including the EQV, eVito commercial van and eVito Tourer from 2022. It already sells the EQC full-sized SUV and EQA compact SUV locally, from $137,990 and $76,800 respectively.
Bridie Schmidt is associate editor for The Driven, sister site of Renew Economy. She has been writing about electric vehicles since 2018, and has a keen interest in the role that zero-emissions transport has to play in sustainability. She has participated in podcasts such as Download This Show with Marc Fennell and Shirtloads of Science with Karl Kruszelnicki and is co-organiser of the Northern Rivers Electric Vehicle Forum. Bridie also owns a Tesla Model Y and has it available for hire on evee.com.au.