In response to the upcoming Euro 7 regulations and drastic changes in the current global automotive market, Mercedes-Benz has clarified that it will be ready to go all electric by the end of the decade where market conditions allow. Shifting from electric-first to electric-only, the German manufacturer reveals that it is accelerating toward an emissions-free and software-driven product focus.
Mercedes-Benz says that by 2022, it will have battery electric vehicles in all segments that the company caters to and that by 2025, all newly launched vehicle architectures will be electric-only and customers will be able to choose an all-electric alternative for every model the company makes. By this time, three electric architectures will be part of its stable. Mercedes-Benz intends to manage this accelerated transformation while sticking to its profitability targets.
“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 Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG. “This step marks a profound reallocation of capital. By managing this faster transformation while safeguarding our profitability targets, we will ensure the enduring success of Mercedes-Benz. Thanks to our highly qualified and motivated workforce, I am convinced that we will be successful in this exciting new era.”
To facilitate this shift, Mercedes-Benz is unveiling a comprehensive plan which includes significantly accelerating R&D. In total, investments into battery electric vehicles between 2022 and 2030 will amount to over €40 billion (approximately R690 billion). Accelerating and advancing the EV portfolio plan will bring forward the tipping point for EV adoption.
As for the three aforementioned electric architectures, Mercedes-Benz confirms that it will cover all medium to large passenger cars and establish a scalable modular system with its primary platform while AMG derivatives will be given a dedicated performance electric vehicle platform catering to technology and performance oriented consumers. Electric vans and LCVs, which will contribute to emission free transportation and cities in the future, will constitute the third platform.