Friday, December 9, 2022
News Mercedes-Benz will Invest Over $60 billion Euros in Electrification and Software development

Mercedes-Benz will Invest Over $60 billion Euros in Electrification and Software development

Mercedes-Benz will spend more than $60 billion euros in the next 4 years towards electrification

  • This money will be invested between 2022 and 2026

  • Investments in research and development will fall by 20% by 2025 compared to 2019

  • Priorities will shift and money will be focused more directly on the important projects

Daimler’s Supervisory board has approved the 2022 to 2026 Mercedes-Benz business plan, which carries over $60 billion in investments.

These investments will be used to speed up and complete the automaker’s shift to electric power as well as increasing research in software development.

The goal of this plan is to lower global research and development spending while positioning Mercedes-Benz as the technology leader in the automotive luxury segment and the premium vans segment.

To achieve this, Mercedes will shift its priorities to focus the money it spends more directly towards the most important projects, such as electrifying its lineup and incorporating software-based innovations in its vehicles.

Innovations in battery technology will contribute to lowering their cost and the implantation of scalable platforms will allow the company to build many different models from the same basic elements, which drastically cuts development time and cost.

Mercedes-Benz also wants to set up a direct sales model, similar to Tesla and other electric vehicle makers, which would allow it to maximise profits on every vehicle by cutting out the dealership’s margin and the negotiations with the customer, with vehicles selling for a fixed price.

Digital services are also expected to become a bigger part of the company’s revenue by moving optional features to subscription models and offering a host of extra-cost available services.

From 2025, every new vehicle platform launched will be fully electric and the company wants to only sell electric vehicles “wherever the market conditions permit”, a strategy similar to Toyota’s, in which internal combustion engines are still part of the picture in countries where the charging infrastructure or the buying public is not ready for mass electrification.

Trending Now

The Apple Car Won’t Arrive Before 2026 and it Won’t be Fully Autonomous

The Apple Car project has been modified many times over the last few years. According to the company, the car will be autonomous...

Switzerland Could Restrict EV Usage During Power Outages

Switzerland relies on France and Germany for its electricity supply. The country unveiled a plan to lessen the impact of potential outages this...

Future BMW EVs Could Use Road Imperfections to Charge Their Batteries.

This technology uses the movement of the suspension to spin a generator. The flagship i7 could be the first model to use this...

Volkswagen Launches Updates for 2021 ID.4 Owners, Includes New 12V Battery

New content updates for ID.4, Not OTA Update comes with new 12V battery for some cars   Volkswagen is rolling out some updates for the...

2024 Chevrolet Corvette E-Ray Hybrid Configurator Leaked

This confirms many things about the once-rumoured hybrid Corvette. One is the name. Two, it’s not a plug-in hybrid. This could be considered a...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.