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Mercedes-Benz will go all-electric starting in 2025, with plans to launch three electric-only architectures that year and install more than 200 gigawatt hours of battery cell capacity at eight factories.
Earlier today, Mercedes-Benz, a German automaker based in Stuttgart, announced plans to be fully electric by the end of the decade. However, all newly launched architectures will be electric-only from 2025, the company said.
“Mercedes-Benz is preparing to go all-electric by the end of the decade, where market conditions allow. By moving from electric first to electric only, the world’s largest luxury car maker is accelerating towards an emissions-free, software-driven future, ”the company said in a press release.
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Mercedes-Benz is just one of many automakers who are now choosing to switch to fully electric ranges. As the dynamics of the auto industry continue to move towards a transition to electric powertrains, more companies are announcing their intention to move away from combustion engines in favor of battery-powered cars. Lamborghini is one of the most notable automakers to announce this strategy.
The change in the market is most certainly the root cause of Mercedes’ decision to switch to a fully electric range in the years to come. “The shift to electric vehicles is accelerating, especially in the luxury segment, to which Mercedes-Benz belongs,” said Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG. “The tipping point is approaching, and we will be ready as markets switch to electricity only by the end of this decade.”
Electric car enthusiasts are often skeptical of automakers and OEMs, especially when plans or announcements indicate that a longtime ICE giant is considering switching to electrification. It takes more than an announcement to convince shareholders and skeptics of their plan. Mercedes has put together a comprehensive game plan that will solidify its intentions to ditch ICE vehicles, and that starts with a massive investment in battery-electric vehicles, which total over 40 billion euros ($ 47.089 billion). . The automaker has divided its plan into four parts: technology, production, people and finance.
The technological plan includes three new architectures: MB-EA, AMG.EA and VAN.EA. Each architecture will power a specific class of vehicles, from performance vehicles to medium and large passenger cars to light commercial vehicles.
The production plan outlines how Mercedes plans to move to BEV manufacturing, including assistance from GROB, a German global leader in the production of highly innovative batteries and automated systems. Mercedes said it also plans to install a new battery recycling plant in Kuppenheim, Germany, which will help develop and secure recycling capacity. This will be operational in 2023.
The personnel plan describes the retraining and retraining of current employees. This has already started, as Mercedes-Benz said it has already trained around 20,000 employees in aspects of electric mobility.
Finally, the financial plan shows that the company will reallocate its capital from “EV-first” to “EV-only”. Mercedes-Benz writes:
“Investments in combustion engines and plug-in hybrid technologies will fall by 80% between 2019 and 2026. On this basis, Mercedes-Benz projects corporate margins in a BEV world similar to those of the ICE era.
You can read the full Mercedes-Benz plan here.
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