Mercedes | Daimler: I.C.E to fund development of New EV’s
Mercedes Benz Parent Daimler AG will continue to manufacture Internal Combustion vehicles to develop the future of EV’s.
The German Automaker, Daimler AG, said that it is not in a hurry to entirely give up on the idea of producing I.C.E vehicles, as it has a solid business which is vital to provide the money required towards future investments.
Moving forward, plug-in hybrids and Mercedes’ own, EQ pure-electric brands will have more significance.
Daimler admits that the transition to electric is a necessity with decarbonisation goals and stringent emissions regulations coming into force globally.
However, to finance this move, it will still be necessary to manufacture vehicles powered by gas and diesel to finance the transition to EV’s. The CEO at Daimler, Ola Källenius, has made it absolutely clear that cars with internal combustion engines are critical to generating the cash required for the development of EV’s and hence called the ICE vehicles ‘Money Machines.’
“It is premature for us and without the economic sense to give up on ICE cars that are a solid business model and generates money for future investments” clarified Källenius.
What all this means is that Daimler will keep its efforts ON in the development and marketing of EV’s, although it plans to do so at a reasonable pace, unlike some other big manufacturers like Volvo, Jaguar and Ford, who vouched to completely phase-out selling ICE altogether vehicles by 2030.
Mercedes Benz intends to make a complete switch to EV’s by as far back as 2039. Daimler, meanwhile, is yet to set an exact timeline for the completion of this transition.According to Källenius, it was too early to speculate the direction the market would take over the next decade.
In 2020, cars with alternative fuels sold by Daimler accounted only for about two per cent of total sales. To put that into perspective, it comes to roughly 2.5 million units globally. Mercedes Benz plans to introduce four new all-electric vehicles to the market, with one of them being an E version of the recently launched Mercedes Benz S Class.