Mercedes-Benz manufacturer Daimler plans to invest more than € 40 billion by 2030 to be ready against Tesla in the all-electric car market, but warned that technological change will lead to job losses. Outlining its strategy for the electric future, the company announced that it and its partners will build eight battery plants to boost production of electric vehicles (EVs) and that only new EVs will be produced on all new vehicle platforms from 2025.
“We really want to cut in … and by the end of the decade, if we don’t want to be completely electric,” CEO Ola Källenius told Reuters, adding that spending on conventional internal combustion engine technology will fall to almost zero by 2025. However, Daimler, which will be renamed Mercedes-Benz as part of plans to divest its truck business later this year, has not set a specific deadline for phasing out sales of fossil fuel cars.
Owned by some car manufacturers, such as Geely. Volvo has committed to fully switch to electric propulsion by 2030, while General Motors Co says it is aiming to achieve fully electric propulsion by 2035 as they all try to catch up with industry leader Tesla.
“We need to move the debate away from when to build the last internal combustion engine because it’s irrelevant. The question is how quickly we can get to be nearly 100 percent electric, and that’s what we’re focusing on,” Källenius said.
Daimler shares rose 2.5 percent after news released just over a week after the European Union fought global warming As part of a comprehensive package of measures, it proposed a de facto ban on the sale of new petrol and diesel cars from 2035.
Prior to the EU notification, car manufacturers provided information on a number of significant investments in electric cars. Earlier this month, Stellantis said it would invest more than € 30 billion in electrifying its model range by 2025.
As a result of the switch, Mercedes-Benz will reduce its internal combustion engines by 80% between 2019 and 2026. investments in plug-in hybrid technologies, which the group says will have a direct impact on jobs. EVs are made up of fewer components, so they require fewer workers than internal combustion motor vehicles.
“Transforming the workforce will involve tough decisions. Yes, we need to reduce and reduce our personnel costs overall. “said Sabine Kohleisen, Mercedes-Benz’s Board of Directors and Chief Human Resources Officer.
Daimler has announced that electric and hybrid electric cars are expected to account for 50 percent of sales from 2025, purely electric cars are expected to do much of this, earlier than expected before 2030.
The carmaker will introduce three electric platforms, one for passenger cars and SUVs, one for passenger cars and SUVs. vans and one for high-performance vehicles – which will hit the market in 2025. Daimler will also acquire the British company YASA to help develop high-performance electric motors.
It has also been announced that a battery cell capacity of 200 gigawatts (GWh) will be built. Four of the new battery plants will be in Europe and one in the United States. Daimler will also announce new European partners for its battery production plans shortly.
The EU is working hard to build battery capacity to offset China’s dominant role in battery production. Rival Volkswagen plans to build half a dozen battery plants in Europe. Daimler announced that as part of its electrification strategy, it would build a battery recycling plant in Kuppenheim, Germany, which would start operating in 2023.
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