Mercedes-Benz, a division of Daimler, is preparing for an all-electric future, shifting from an electric-first strategy to electric-only.
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 Mercedes-Benz makes. By 2022, the company will have battery electric vehicle (EV) models for all segments.
“The EV shift is picking up speed—especially in the luxury segment, where Mercedes-Benz belongs,” said Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG. “The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade. 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.”
To accelerate its EV plans, Mercedes-Benz is investing in electric vehicles between 2022 and 2030 to the tune of $47 billion including R&D and to help encourage customers to make the transition.
By 2025, Mercedes-Benz will launch three electric-only architectures:
- MB.EA – that will cover all medium to large size passenger cars.
- AMG.EA – for performance EVs.
- VAN.EA – A new architecture for electric vans and light commercial vehicles.
Mercedes-Benz has joined the chorus of automotive OEMs that have vowed to switch to an all-electric future. General Motors said it will phase out gas and diesel vehicles by 2035 and only produce EVs moving forward. Ford followed suit saying it would invest $22 billion in electrification through 2025 and would make EVs its primary models beginning in 2035. Other auto makers followed including Volvo, Volkswagen, Jaguar, Honda, Toyota and more.
The move to electrification is due to a few motivating factors. Consumer adoption has never been greater, and Tesla Motors showed if the car is built right, demand is there. Additionally, regional and company-specific environmental goals are pushing these companies to become carbon neutral in order to curb climate change.
Gigafactories coming
Mercedes-Benz said it will need battery capacity of more than 200 gigawatt hours and plans to set up eight gigafactories for producing cells. This is in addition to the already planned network of nine plants dedicated to building battery systems.
The company said the next generation batteries will be standardized and suitable for use in more than 90% of all Mercedes-Benz cars and vans but will also be flexible enough for individual solutions.
More charging points
Mercedes-Benz said it will work to install more charging points on the road through its Plug & Charge systems that allows users to plug-in, charge and unplug without any extra steps needed for authentication and payment processing.
Me Charge has already installed more than 530,000 AC and DC charging points worldwide and Mercedes-Benz is working with Shell on expanding the charging network with more than 30,000 points by 2025 in Europe, China and North America. This will include more than 10,000 high-power chargers globally.
