Mercedes plans to go all-electric by the end of the decade

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Germany’s Daimler said Thursday that his Mercedes-Benz brand would be “ready to go all-electric at the end of the decade, where market conditions allow”.

It’s the latest sign of how big auto companies are gearing up for an electric vehicle-based future.

According to Daimler, from 2025, all “vehicle architectures newly launched by Mercedes-Benz will be electric only”.

Breaking it down, Daimler explained how he plans to launch three purely electric architectures that year: MB.EA, which will affect medium and large passenger cars; AMG.EA, which will focus on performance vehicles; and VAN.EA, for light commercial vehicles and vans. Models based on these platforms will be electric only.

From 2025, consumers will also have the option of purchasing an “all-electric alternative for every model the company makes.”

“The shift to electric vehicles is accelerating, especially in the luxury segment, to which Mercedes-Benz belongs,” Ola Källenius, who heads both Daimler and Mercedes-Benz, said in a statement.

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“The tipping point is approaching and we will be ready as markets switch to electricity only by the end of this decade,” he added. “This step marks a profound reallocation of capital.”

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In light of its plans, Daimler said Mercedes-Benz will accelerate its research and development. “In total, investments in battery electric vehicles between 2022 and 2030 will amount to more than 40 billion euros.

Along with global partners, Mercedes will also seek to establish eight giga-factories to manufacture the cells it needs for its vehicles. This would complement the development plans of nine factories focused on developing battery systems.

Daimler added that Mercedes-Benz intends to “team up with new European partners to efficiently develop and produce future cells and modules, a step which ensures that Europe remains at the heart of the automotive industry, even at the electric era ”.

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Low-emission, zero-emission transport is seen as an essential tool for large economies trying to reduce their environmental footprint and air pollution.

The UK government, for example, plans to stop the sale of new diesel and gasoline cars and vans by 2030 and require, from 2035, that all new cars and vans have zero tailpipe emissions.

Elsewhere, the European Commission, the EU’s executive body, is targeting a 100% reduction in CO2 emissions from cars and vans by 2035.

In this context, many companies involved in the automotive industry have announced their intention to expand their offer of low-emission and zero-emission vehicles.

Earlier this month, for example, the Volkswagen Group said half of its sales are expected to be battery-electric vehicles by 2030. By 2040, the company said nearly 100% of its new vehicles in major markets should be zero emission.

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In March, the Volkswagen Group CEO dismissed the idea that his company might partner with Tesla, telling TBEN that the German auto giant was looking to go its own way.

Speaking to “Squawk Box Europe”, Herbert Diess was asked if he would rule out any future deal with electric car maker Elon Musk, in which VW could manufacture its cars, or if the Tesla and VW brands ‘would unite one day.

“No, we did not consider [that], we go our own way, “he replied.” We want to get closer and then overtake. “

“We think we can – we need our own software stack, our own technology,” he added. “And also, I think Tesla, or Elon, thinks a lot… [about] its way forward. So no, there are no talks between Elon Musk and myself regarding joining forces. “

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