Mercedes to go all-electric by 2030 (maybe)

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Brand announces £34bn plan to shift away from combustion engines

Mercedes-Benz is the latest car maker to announce that it will go all-electric within the next nine years.

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The German premium car brand announced its ambition for an “emissions-free and software-driven” future but with a sneaky caveat. By 2030 all of its models will be fully electric “where market conditions allow”, leaving the door open to some combustion models still existing.

From 2025 the brand says all its new vehicle architectures will be electric only and it plans to launch three new EVs in 2025. By 2030 it aims to have phased out all remaining internal combustion vehicles from its car and van fleets.

Ola Källenius said the EV shift was accelerating particularly quickly in the luxury car marketOla Källenius said the EV shift was accelerating particularly quickly in the luxury car market
Ola Källenius said the EV shift was accelerating particularly quickly in the luxury car market

By the end of 2021 Mercedes will have launched five EVs - EQA, EQB, EQC, EQS and EQV. It says that by 2022 it will have EVs in every segment it currently covers and that from 2025 buyers will be able to choose an electric-only alternative to any of its present line-up.

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Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG said: “The EV shift is picking up speed - especially in the luxury segment, where Mercedes-Benz belongs. 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.”

The EQA is among Mercedes-Benz's existing line-up of EVsThe EQA is among Mercedes-Benz's existing line-up of EVs
The EQA is among Mercedes-Benz's existing line-up of EVs

As part of the €40 billion (£34.3 billion) investment in EVs, three new platforms are being developed. The first scalable system will underpin most of Mercedes’ medium and large passenger cars, with a variety of battery and motor options. Alongside that a dedicated performance platform will sit beneath future Mercedes-AMG models, while a standalone system for vans and light commercial vehicles will serve business needs.

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To help achieve its goal, Mercedes plans to build eight more battery factories around the world, working with various partners to add to nine previously announced plants.

It says that investment in battery research and development, including solid state technology, will bring a new generation of higher energy density for longer range, while helping to increase standardisation across the brand, bringing down production costs.

It has also bought UK motor specialist YASA in order to gain access to its axial flux motor technology and expertise, which it says is key to developing the next generation of ultra-high performance motors.

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The brand, whose A Class is among the UK’s best-selling cars, has also said that in future it will focus more on larger profit margins than volume sales, aiming to sell more of its top-end Maybach and AMG models.

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