- All newly launched architectures will be electric only from 2025.
- In 2025, Mercedes-Benz will launch three exclusively electric architectures.
- Mercedes-Benz will be ready to go all-electric at the end of the decade, where market conditions allow.
- Mercedes-Benz will install a battery cell capacity of more than 200 gigawatt hours with partners, predicts eight Gigafactories.
- New partnerships for the development and production of battery cells in Europe.
- Strengthening of the efficiency of electric transmissions thanks to the vertical integration and the acquisition of YASA, specialist in ultra high performance axial flow motors.
- Plug & Charge to introduce seamless charging with no additional steps needed for authentication and payment. Mercedes me Charge will have more than 530,000 AC and DC charging points around the world.
- The acceleration of the rise in electrification marks a radical change in the allocation of capital.
- Mercedes-Benz is committed to achieving its margin targets – also in a BEV world.
Stuttgart (Germany) – Mercedes-Benz is preparing to go all-electric by the end of the decade, where market conditions allow. Shifting from electric first to electric only, the world’s largest luxury car maker is accelerating towards an emissions-free, software-driven future.
By 2022, Mercedes-Benz will have battery electric vehicles (BEVs) in all segments served by the company. From 2025, all newly launched vehicle architectures will be electric-only, and customers will be able to choose a fully electric alternative for each model the company makes. Mercedes-Benz intends to manage this accelerated transformation while respecting its profitability targets.
“EV shifting is picking up speed, especially in the luxury segment, to which Mercedes-Benz belongs. The tipping point is approaching and we will be ready as markets switch to electricity only by the end of this decade, ”saidOla Källenius, CEO of Daimler AG and Mercedes-Benz AG. “This step marks a profound reallocation of capital. By managing this faster transformation while maintaining our profitability goals, we will ensure the lasting success of Mercedes-Benz. Thanks to our highly qualified and motivated workforce,
I have no doubts that we will succeed in this exciting new era. “
To facilitate this change, Mercedes-Benz is unveiling a comprehensive plan that includes a significant acceleration of R&D. In total, investments in battery electric vehicles between 2022 and 2030 will amount to more than 40 billion euros. The acceleration and progression of the electric vehicle portfolio plan will advance the tipping point for electric vehicle adoption.
Architectures: In 2025, Mercedes-Benz will launch three exclusively electric architectures:
- MB.EA will cover all mid to large sized passenger cars, establishing a scalable modular system as the electric backbone of the future electric vehicle portfolio.
- AMG.EA will be a dedicated performance electric vehicle platform for Mercedes-AMG customers focused on technology and performance.
- VAN.EA ushers in a new era for specially designed electric vans and light commercial vehicles, which will contribute to emissions-free transportation and cities in the future.
Vertical Integration: After reorganizing its powertrain activities to bring planning, development, purchasing and production together under one roof, Mercedes-Benz will deepen the level of vertical integration in manufacturing and development, and infuse the electric drive technology. This step includes the acquisition of the British electric motor company YASA. With this agreement, Mercedes-Benz gains access to unique axial-flow engine technology and expertise to develop next-generation ultra-high performance engines. Internal electric motors, such as the eATS 2.0, are a key part of the strategy with a clear focus on the efficiency and overall cost of the entire system, including inverters and software. China, the world’s largest new energy vehicle (NEV) market, home to hundreds of companies and suppliers specializing in EV components and software technologies, is expected to play a key role in accelerating the strategy of electrification of Mercedes-Benz.
Batteries: Mercedes-Benz will need a battery capacity of over 200 gigawatt hours and plans to set up eight Gigafactories to produce cells, working with partners around the world. This is in addition to the already planned network of nine factories dedicated to the construction of battery systems. The new generation batteries will be highly standardized and suitable for use in more than 90% of all Mercedes-Benz cars and vans, while being flexible enough to offer individual solutions to all customers. When it comes to cell manufacturing, Mercedes-Benz intends to join forces with new European partners to efficiently develop and produce future cells and modules, a step that ensures that Europe remains at the heart of the automotive industry, even in the electric age. Cell production will give Mercedes-Benz the opportunity to transform its established powertrain production network. By continuously incorporating the most advanced battery cell technology into cars and vans, Mercedes-Benz aims to increase range during a model’s production life cycle. With the next generation of batteries, Mercedes-Benz will work with partners like SilaNano to further increase energy density by using a silicon-carbon composite in the anode. This will allow unprecedented autonomy and even shorter charging times. Regarding semiconductor technology, Mercedes-Benz is in talks with partners to develop batteries with even higher energy density and safety.
Charging: Mercedes-Benz is also working to set new standards in charging: “Plug & Charge” will allow customers to plug in, charge and unplug without additional steps required for authentication and payment processing. Plug & Charge will go live with the market launch of the EQS later this year. Mercedes me Charge is already one of the largest charging networks in the world and currently has more than 530,000 AC and DC charging points worldwide. In addition, Mercedes-Benz is working with Shell to expand the charging network. Customers will benefit from improved access to Shell’s Recharge network of more than 30,000 charging points by 2025 in Europe, China and North America, including more than 10,000 high power chargers worldwide. Mercedes-Benz is also planning to launch several premium charging sites in Europe, which will offer a tailor-made charging experience with top-notch facilities.
VISION EQXX: Mercedes-Benz is currently developing the Vision EQXX, an electric car with a real range of over 1,000 kilometers, aiming for a single digit figure for Kwh per 100 kilometers (over 6 miles per Kwh) at speeds of normal highway driving. A multidisciplinary team comprising experts from Mercedes-Benz’s F1 High Performance Powertrain (HPP) division is making rapid progress towards the ambitious goals of the project. The world premiere will take place in 2022. Technological advances made with Vision EQXX will be adapted and applied for potential use in new electrical architectures.
Mercedes-Benz is currently preparing its global production network for exclusively electric production with the ramp-up pace designed to keep pace with market demand. Thanks to the first investments in flexible manufacturing and the state-of-the-art MO360 production system, Mercedes-Benz can already mass produce BEVs. Starting next year, eight Mercedes-Benz electric vehicles will be produced at seven sites on three continents. In addition, all passenger car and battery assembly sites managed by Mercedes-Benz AG will switch to carbon-neutral production by 2022. To improve manufacturing efficiency, Mercedes-Benz partners with GROB , a German world leader in the production of batteries and highly innovative automation systems, to strengthen its battery production capacity and know-how. The cooperation focuses on the assembly of battery modules as well as the assembly of packs. Mercedes-Benz also plans to install a new battery recycling plant in Kuppenheim, Germany, to develop and secure recycling capacity and know-how. Operations will start in 2023, depending on the outcome of promising discussions with the public authorities.
The transition from internal combustion engines to electric vehicles is achievable and already underway at Mercedes-Benz. Together with employee representatives, Mercedes-Benz will continue to transform its workforce, using extensive retraining programs, early retirement as well as buy-backs. TechAcademies will provide training for future-oriented qualifications to their colleagues. In 2020 alone, around 20,000 employees in Germany were trained in aspects of electric mobility. To materialize the development plans for the MB.OS operating system, 3,000 new software engineering jobs will be created around the world.
Mercedes-Benz remains committed to the margin targets set in fall 2020. Last year’s targets were based on the assumption to sell 25% hybrid and electric vehicles by 2025. Today’s reiteration is based on an assumed xEV share of up to 50% by 2025 and a market scenario for sales of new cars that have essentially gone all-electric by the end of the decade. An important lever is to increase net income per unit by increasing the proportion of premium electric vehicles such as Mercedes-Maybach and Mercedes-AMG models, while controlling prices and sales more directly. Rising revenues from digital services will further support results. Mercedes is also working to further reduce variable and fixed costs and reduce the investment share of capital expenditure. Common battery platforms and scalable electrical architectures, combined with advances in battery technology, will result in higher degrees of standardization and lower costs. The proportion of battery costs in the vehicle is expected to decrease significantly. The capital allocation changes from EV-first to EV-only. 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.
“Our main duty in this transformation is to convince customers to make the change with convincing products. For Mercedes-Benz, EQS ‘flagship product is only the beginning of this new era ”,Kalleniusmentionned.