Mercedes-Benz Speeds Up Electric Plans With $47 Billion -- Update
23 July 2021 - 12:18AM
Dow Jones News
By Kim Richters
Daimler AG's flagship Mercedes-Benz brand plans to spend more
than 40 billion euros ($47.18 billion) between 2022 and 2030 in its
push for fully electric vehicles, the latest car maker vowing to
accelerate the transition to electric mobility.
At a strategy event on Thursday, Mercedes-Benz said it would be
ready to go all electric by the end of the decade, where market
conditions allow, and that it expected hybrid and electric vehicles
to account for up to 50% of sales by 2025. However, it didn't
disclose a specific date for phasing out cars with
internal-combustion engines.
Mercedes-Benz would need battery capacity of more than 200
gigawatt-hours and it wants to set up eight factories for producing
battery cells together with partners world-wide. These sites are in
addition to an already planned network of nine plants for building
battery systems, it said.
With its announcement, Mercedes-Benz, which said it would stick
to its profitability targets, joins other major auto makers that
have released electrification budgets and plans as the industry
shift intensifies. Stellantis NV, formed through the merger of Fiat
Chrysler Automobiles NV and Peugeot SA, recently said it would
spend more than EUR30 billion through 2025 on electrification and
software development. German car giant Volkswagen AG has earmarked
investments of around EUR73 billion through 2025 in what it
describes as future technologies.
On Thursday, Mercedes-Benz said that all newly launched vehicle
architectures would be electric-only from 2025 and it wants to
insource electric-drive technology, which will include acquiring
U.K.-based electric motor company YASA.
"The EV shift is picking up speed--especially in the luxury
segment, where Mercedes-Benz belongs. The tipping point is getting
closer and we will be ready as markets switch to electric-only by
the end of this decade," said Daimler's Chief Executive Officer Ola
Kallenius.
At 0133 GMT, shares in Daimler traded 1.3% higher at
EUR71.75.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
July 22, 2021 10:11 ET (14:11 GMT)
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