Mercedes-Benz sets the course for a fully electric age

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Mercedes-Benz sets the course for a fully electric age-course

Mercedes-Benz puts the course for a fully electric future: until the end of the decade, the brand wants to be ready to become fully electric – everywhere where it allows the market conditions. With this strategic step of “Electric First” to “Electric Only”, Mercedes-Benz accelerates the transformation into an emission-free and software-powered future.

By 2022, Mercedes-Benz will offer battery-electric vehicles (Battery Electric Vehicles – BEVs) in all segments in which the brand is represented. From 2025 all new vehicle architectures should be only electrical, and the customers will have a fully electric alternative to choose from for each model. In the course of this accelerated transformation, Mercedes-Benz holds its profitability targets.

“Electromobility wins ride – especially in the luxury segment where Mercedes-Benz is home. The turning point is approaching, and we will be ready if the markets turn fully on electric cars until the end of the decade. With this step is a fundamental re-allocation of capital. We want to make the accelerated transformation profitably and thus continue the success story of Mercedes-Benz in a new era. I am convinced that we will succeed with our highly qualified and highly motivated workforce.”- Ola Kallenius, CEO of Daimler AG and Mercedes-Benz AG

The company accelerates a current communication therefore significantly the investments in research and development. In total, more than 40 billion euros for investment in battery electric vehicles are provided between 2022 and 2030. The faster expansion of the offer to convincing electric cars will accelerate the breakthrough of electromobility.

The technology plan from 2025

In 2025 Mercedes-Benz wants to introduce three fully electric architectures:

  • MB.EA cover all medium and large cars and as a scalable modular system becomes the electrical basis of the future BEV portfolio
  • Amg.EA is intended to be an electric platform designed for top performance, which focuses on the needs of technology affairs and performance-oriented customers of Mercedes-AMG
  • Van.EA is intended to use a new era for electrical vans and light commercial vehicles that will contribute to emission-free transport and CO2-free cities in the future

Increase in value added depth

After the reorganization of its drive activities already made with the bundling of planning, development, purchasing and production under one roof, Mercedes-Benz increases its own added value in development and production by the insourcing of drive technologies for electric cars. This step also includes the acquisition of the British electric motors specialist Yasa. With this acquisition, Mercedes-Benz gives access to unique technology in the field of axial flow engines and expertise for the development of ultra-high-performance axial flow motors. Own electric motors, including the EATS 2.0, are an important part of the strategy with a clear focus on the efficiency and the cost of the entire system, including inverter and software. China should play a key role in the accelerated electrostrategy of Mercedes-Benz. The country is already the world’s largest electric car market – with hundreds of companies and suppliers specializing in software and components for electric vehicles.

Mercedes-Benz plans eight giga factories

Mercedes-Benz requires a battery capacity of more than 200 gigawatt hours and is therefore planning to build eight giga factories for cell production worldwide together with partners worldwide. These capacities complement the already planned network of nine works for the production of battery systems. The next battery generation should be highly standardized and suitable for use in more than 90 percent of all future Mercedes-Benz cars and vans. At the same time, it should be very flexible to offer individual solutions to all customers of Mercedes-Benz.

In Europe, Mercedes-Benz wants to develop and produce future cells as well as modules with new partners. This step is intended to help Europe also remain a center of the automotive industry in the electrical age. Cell production allows Mercedes-Benz to transform the existing PowerTrain production network. Due to the continuous integration of the most advanced battery cell technology in its cars and Vans, Mercedes-Benz wants to increase the range of vehicles in the life cycle.

Mercedes-Benz works together with partners such as Silanano already at the next battery generation. The aim is to increase energy density through a significant increase in the silicon content on the anode. This allows unprecedented ranges and even shorter charging times. In solid technology, Mercedes-Benz is in talks with partners to develop batteries with even higher energy density and security.

Mercedes relies on Plug & Charge

Even when loading, Mercedes-Benz works to set new standards. “Plug & Charge” allows a charging process without any additional steps for authentication and payment processing are required. “Plug & Charge” will go live with the market launch of the EQs this year. “Mercedes Me Charge” is already one of the world’s largest shops and currently includes more than 530.000 DC and alternating current charging points worldwide. In addition, Mercedes-Benz works together with Shell at an extension of the shop network. Customers should receive improved access to Shell’s argue network, which is up to 2025 more than 30.000 charging points in Europe, China and North America will have more than 10.000 fast charging stations. In addition, Mercedes-Benz plans premium charging stations in Europe, which should offer customers a tailor-made loading offer to outstanding locations.

An electric car with more than 1000 kilometers range

Mercedes-Benz currently develops the Vision EQXX, an electric car with a real range of more than 1000 kilometers and the goal of achieving a single-digit consumption value for kilowatt hours per 100 kilometers at normal speed on the highway. An interdisciplinary team, among other things, with experts from Mercedes-Benz F1 High Performance Powertrain (HPP) Make great progress in this project, the manufacturer shares with. The world premiere of the vehicle is planned for the year 2022. The technological advances from the Vision EQXX should be transferred to the new vehicle architectures of Mercedes-Benz.

Production plan with focus on fully electric cars

Mercedes-Benz prepares its worldwide production network with high pressure to manufacture fully electric vehicles. With early investments in flexible production and the use of the state-of-the-art production system MO360 Mercedes-Benz can already produce BEVs in large series. From the coming year, at seven locations on three continents, eight Mercedes-Benz electric vehicles run from the band. In addition, until 2022, all passenger car and battery montage sites operated by Mercedes-Benz AG should be converted to climate-neutral production.

By working with rough, a German world leader for innovative battery production and automation systems, Mercedes-Benz is strengthening its battery production capacities and one’s own know-how. The cooperation focuses on the assembly of battery modules and battery packs. In addition, Mercedes-Benz plans the construction of a recycling factory for batteries in the Badische Kollenheim. Thus, the company develops appropriate know-how and secures recycling capacities. The start is planned for 2023 – depending on the promising talks with the authorities.

Staff plan

The transformation from the internal combustion engine to the electric drive is possible and at Mercedes-Benz already in full swing, the manufacturer allows knowledge. Together with the employee representatives, Mercedes-Benz works on the reorientation of his workforce. The company relies on extensive qualification and retraining programs, natural fluctuation and severance payments. Technology Academies offer employees for future-oriented qualifications. In 2020 alone, around 20 were around 20.000 employees with a focus on electromobility trained. For the development of the future operating system MB.OS will be created 3000 new software engineering jobs worldwide.

financial plan

Mercedes-Benz remains committed to its margin objectives issued in autumn 2020. These objectives was based on a share of hybrid and pure electric vehicles (XEV) of 25 percent in total sales in 2025. The confirmation of these objectives are based on the following assumptions: a significantly higher XEV share of 50 percent in 2025 and a market scenario, in which the internal combustion engine will be substantially replaced by the end of the decade of electric cars. An important control lever for achieving the margin destinations is the increase in net sales per vehicle – for example, by a higher proportion of high-end electric cars, such as Mercedes-Maybach and Mercedes-AMG. In addition, a more direct control over prices and sales is sought. Higher sales through digital services should make a further positive contribution.

Mercedes-Benz works at the same time on the further reduction of fixed costs and variable costs as well as to reduce the share of property investment in total investment. Standardized battery platforms and scalable vehicle architectures should contribute to a cost reduction together with advances in battery technology. The proportion of battery costs on the vehicle is expected to decline significantly. The capital allocation shifts from “Electric First” to “Electric Only”. Investments in internal combustion engines and technologies for plug-in hybrids should decline between 2019 and 2026 by 80 percent. On this basis, Mercedes-Benz predicts similar returns for the fully electric world as in the age of the internal combustion engine.

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4 thoughts on “Mercedes-Benz sets the course for a fully electric age”

  1. Mercedes will have no choice but does the “inventor of the automobile” also want to survive in the future. I had that about. 3 years after the model S with an electrical S-Class calculated in response. But you were probably a bit overested and has underestimated the newcomer something and believed that the “spook” is over quickly over. Today you have to watch how to get the Altlast burners as socially acceptable as possible from the company.

    Farnsworth

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  2. I would be glad if MB survives this market change.
    I like to drove Mercedes for years …

    Nevertheless, the procedure and the approach is very well known ..
    There is a company that has already had that in the plan year years ago and most already implemented &# 128521;

    It remains exciting

    Reply
  3. Why should I wait as a customer until 2025 when I can already buy electric platforms at VW or Tesla, with its advantages, with Tesla also with exclusive charging network and plug&Charge as a matter of course. In practice, each driver of an EQS luxury carriage is currently worse on the road in terms of charging infrastructure than the driver of a Schnoden Model3 SR + from 35t after promotion.

    “The best or nothing” fits here as a slogan probably not quite for Mercedes but rather for Tesla

    I hope very much, the Mercedes still gets the curve

    Reply

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