Charging Into the Future; Mercedes-Benz Going All-Electric
With worldwide demand for energy-efficient, affordable, electric vehicles, Mercedes-Benz has decided to focus its manufacturing efforts on forming an all-electric lineup by 2025. As of now, Mercedes-Benz is on track to have battery electric vehicles (BEV) in all segments, with plans to have an all-electric lineup shortly after. In an effort to reduce their carbon footprint, Mercedes-Benz announced that all new architectures after 2025 will be electric-only, with an all-electric alternative for every model made.
For more information on Mercedes-Benz and their switch to EVs, stop in at Mercedes-Benz of the Lehigh Valley, located in Allentown, PA.
Shifting with the Times
Mercedes-Benz has made its name on cutting-edge technology and staying ahead of the curve, and its switch to EVs is no surprise. Seeing the change on the horizon is the CEO of Daimler AG and Mercedes-Benz AG, Ola Källenius, recently stating in an interview “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.” The current aim for Mercedes-Benz is to accelerate the switch to EVs while remaining profitable, a growing challenge.
Sights set on the EV shift, Mercedes-Benz began to reallocate their capital and R&D efforts rapidly. Källenius has spearheaded the change, and when asked about the efforts gave this response, “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. Thanks to our highly qualified and motivated workforce, I am convinced that we will be successful in this exciting new era.”
A shift this large is not without a cost, Mercedes-Benz plans to invest over $45 billion in EVs by the end of 2030. As Mercedes-Benz advances their EV portfolio they push the industry closer to the tipping point of adopting EVs, quite the noble effort.
As Mercedes-Benz makes the shift to EVs, their all-electric plan states that all architectures made in 2025 or later will be electric-only. Planned for 2025, these will be the first three electric-only architectures:
- MB.EA will cover all medium to large size passenger cars, establishing a scalable modular system as the electric backbone for the future EV portfolio.
- AMG®.EA will be a dedicated performance electric vehicle platform addressing technology and performance-oriented Mercedes-AMG® customers.
- VAN.EA ushers in a new era for purpose-made electric vans and Light Commercial Vehicles, which will contribute to emission-free transportation and cities in the future.
In order to facilitate such a large switch in manufacturing, Mercedes-Benz has laid out a comprehensive plan for reallocation of their financial and manufacturing resources and capabilities. Here is how Mercedes-Benz plans on attacking this large undertaking of switching to an all EV lineup.
Streamlining their powertrain manufacturing, Mercedes-Benz placed planning, development, purchasing, and production beneath one roof, allowing them to more efficiently produce powertrains. Taking this idea to the next level, Mercedes-Benz is further vertically integrating their manufacturing efforts and has decided to insource their electric drive technology. This switch comes right alongside the recent acquisition of YASA, a UK-based electric motor manufacturer.
Along with their acquisition of YASA comes access to exclusive motor technology and high-level expertise in performance motors. The ability to create in-house electric motors will be a key part of the Mercedes-Benz roadmap to full EV integration. Aiming to increase performance, lower cost, and raise efficiency, Mercedes-Benz has turned to the Chinese new energy vehicle (NEV) market. China is currently the world’s largest NEV market, with a plethora of NEV companies and suppliers, all bidding furiously to supply Mercedes-Benz endeavor into the EV world.
This renewed focus on vertical integration by Mercedes-Benz is part of a larger plan to switch to an all EV lineup. With the ability to produce many parts in-house, Mercedes-Benz will be able to reduce the cost of making EVs, passing those savings along to the customer with lower MSRPs.
Mercedes-Benz has planned out a network of nine battery plants, with more partners worldwide, aiming to standardize their batteries for use in 90% of their cars and vans. Building plants for current battery technology isn’t Mercedes-Benz’s only plan, they have also teamed up with SilaNano with plans to develop silicon-carbon composite battery technology for increased range and shorter charging times.
Teaming up with various European cell manufacturers, Mercedes-Benz intends to be able to produce their own cells, batteries, and powertrains. This full integration of the battery and powertrain production process helps Mercedes-Benz fulfill its goal of keeping Europe as the epicenter of vehicle technology in the electric era.
Launching alongside the EQS later this year is Plug & Charge, a hassle-free charging system designed to save customers time while charging their vehicles. The rollout of Plug & Charge should go smoothly as Mercedes-Benz already has one of the world’s largest charging networks with their Mercedes me Charge network. Comprised of over 530,000 AC and DC charging ports throughout the world, the Mercedes me Charge network will be even further expanded as Mercedes-Benz has teamed up with Shell.
With large strides in all areas of their manufacturing, with vertical integration being a large focus for their future success, Mercedes-Benz is well on its way to its goal of full EV integration by 2030. Interested in Mercedes-Benz future EV lineup, stop in at Mercedes-Benz of Lehigh on the Lehigh Street Auto Mile in Allentown, PA.
Making it all Happen
With the transition away from internal combustion engines in full swing, Mercedes-Benz is also transforming its workforce. Working alongside employee representatives, Mercedes-Benz has implemented re-skilling techniques, allowing their existing employees to stay on the team while learning valuable new skills. Fully committed to this EV switch, Mercedes-Benz has ramped up hiring, with 20,000 German employees being trained on e-mobility, along with 3,000 new software engineering jobs having been created. The 3,000 software engineering jobs created are in an effort to deliver upon the MB.OS operating system, a vital component to the EV switch Mercedes-Benz is currently undertaking.
Outlined in the fall of 2020, Mercedes-Benz had margin targets based on an assumption of selling 25% hybrid and electric by 2025. Upping these numbers to fit their shift to EVs, Mercedes-Benz is now expecting to sell 50% EVs by 2025, with even larger numbers planned for the future. An important part of this plan is increasing high-end EVs, with Mercedes-Maybach and Mercedes-AMG® models rumored to be in the future plans for Mercedes-Benz.
Altogether, it’s fairly clear that Mercedes-Benz is taking its commitment to EVs pretty seriously, with plans for rapid change already underway. As Mercedes-Benz’s first EV flagship vehicle the EQS makes its way to dealerships, it’s clear that this is just the beginning of a new era. Stay up with the times and visit Mercedes-Benz of the Lehigh Valley to pre-order your all-new Mercedes-Benz EQS today!
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