Daimler will commit an investment of 60 billion euros to fully electrify before the end of the decade.
Daimler said by 2025 it wants to achieve its target of half of total new sales being electric vehicles. Five years later, that is, by 2030 sales of new vehicles will be fully electric.
The key to its electrification is implementing measures to increase efficiency and lower fixed costs, with increased revenue per vehicle sold supporting the coffers.
This is a hint that the company will focus on larger, higher-quality, high-margin vehicles such as the upcoming Mercedes-Benz EQS premium electric sedan – along with a “gradual shift” towards online sales.
Mercedes-Benz intends to reduce capital expenditures as well as research and development spending by 2025 “by more than 20 percent compared to 2019 and further reduce them beyond 2025”, he said.
The priority is spending on research and development “for the electrification of the product portfolio as well as further digitization and the next step towards automated driving,” Daimler said.